Want to get started on Building a Winning Organizational Culture?

Join Empuls - a holistic employee engagement platform - to drive overall productivity and performance. Choose a plan that best suits your needs and book a demo right away!


All You Need To Know About Employee Retention

When it comes to retention strategies, you've heard them all: Free sporting event tickets, complimentary fitness memberships, hefty compensation packages etc. But perks and pay do not address the underlying problems.

Retention and Turnover
10 Min read
Last Updated on
June 10, 2021

Retention starts with impression.  Today, over 60 percent of employees favor job-hopping. Voluntary turnover is costly yet many organizations fail to analyze, prioritize and revolutionize their employee retention strategy. When it comes to retention strategies, you’ve heard them all: Free sporting event tickets, complementary fitness memberships, hefty compensation packages etc. But perks and pay do not address the underlying problems. Rather, it’s the empty promises and values that drive employees away. Millennials, the largest growing workforce, expect integrity, fairness and transparency and pursue purpose, job flexibility and professional development over pay.

First impressions drive retention    

Like any first impression, an employee’s first impression can make or break the relationship. Your company’s recruitment and onboarding processes are not only the first impression touchpoints of recruitment but they are also the first finger-holds of employee retention. A reliable employee value proposition (EVP) is a proven means to attract, engage and retain star talent.   EVPs represent everything of value that an employer provides to its employees. However, most organizations treat their EVPs as a one-hit wonder. A momentary success may bring talent through the door but it often fails at making them loyal fans.

EVPs are never signed, sealed, delivered and done

Typically, organizations forget that an EVP is a continuous and evolving plan. It must be “realistic, differentiating and authentic,” with periodic revisions that align with employee needs and expectations. Importantly, it must be supported by management and align with company marketing messages.

Many businesses market EVPs such as journey maps, professional development programs, business resource groups (BRGs), and telecommute options yet they have no system of accountability. For instance, offering professional development or BRGs are futile if employee’s are denied time to partake. Worse, studies show that negative first impressions are enduring and difficult to change. An EVP is more than bait. It needs to be promoted, permitted and supported, if you plan to keep your catch.

Case study

A technical support services company offered a compensatory day to employees who after working their full day continued to work another shift. However, management failed to reassign the employees’ regular customer workload, thus once they returned from the compensated day their duties compounded. Incentives like this are counterproductive. They lead to employee burnout, disengagement and attrition.

In addition, recruitment content, company values and mission statements that are inconsistent, overstated or marginalized manifest as broken promises and value incongruence. For example, “a company may boast a deep commitment to CSR and green policies when in reality their activities extend as far as donating to charities.” For employees who deeply value CSR, this deviates from the values the company originally advocated. All of which can lead to negative attitudes, decreased performance, buyer’s remorse, and eventually voluntary turnover.  

Consequences of value incongruence

Employees are quick to spot value incongruence, especially in the wake of Enron and Well Fargo who falsely touted values of integrity and ethics. When companies say one thing but do another or fail to keep their end of the bargain employees tend to reciprocate. Scandals are not the only cause of outrage. When employees are initially offered training or flexible hours and later find that management either denies, ignores, or delays it, they experience incongruence between actions and words and often blame the organization for obstructing the goals they expected to reach. Gallup reports that many companies offer professional development and “flexible policies that simply never get used because their culture implicitly directs employees away from taking advantage of those perks.”

Many employees feel unfairly treated after realizing that the EVP they “bought” is deterred or denied. When employee’s feel deceived they usually overgeneralize and collectively perceive management, the organization and its policies as hypocritical.  This not only deteriorates the psychological contract it can trigger negative bias. People inherently latch onto the first information or values they receive and compare it to the present values to make decisions. Consequently, when employees sense inequity, they tend to anchor to negatives and perpetually detect other discrepancies.

For example, if the job description states “any employee is eligible for flexwork” but later the hired candidate is denied it or sees that the employee policy handbook says, “not every job lends itself to flextime,” the employee will likely feel misled. Once the psychological contract breaks employees are more likely to reciprocate by withdrawing discretionary effort, lowering performance. Similar to a self-fulfilling prophecy, when employees withdraw effort it further obstructs their potentiality for flexwork.

At this point, employees may not only want to leave, but they may also excessively call in sick or take other liberties as they feel the company owes them for the aggravation and for misleading them. Eventually, they begin looking for other opportunities or they are terminated. Negative bias, disengagement and employee turnover can be minimized by keeping EVP promises and focusing on the good. Instead of feedback that centres on employee mistakes, reinforce the positives within your company. Emphasize what employees have done right. While recognition and rewards are essential, it’s also important to establish trusting relationships and elongate positive employee experiences.

Way forward

Trust, openness and prolonging the positives is up to leaders. Having employees share positive moments by asking, “what went right today?” is beneficial in team meetings. But behind closed doors also ask employees “what went wrong today?” Doing so fosters ongoing communication and provides the building blocks to form trust.  To prevent value incongruence and determine a realistic and sustainable EVP, analyze and close the gap between the explicit espoused values versus the implicit values and norms enacted within the organization.  

Whichever approach you take, the EVP, job description, marketing content, corporate policy, culture, and management approach must align. This sets expectations for new hires, paves their way for success and weeds out those who won’t fit, reducing costly turnover.

Xoxoday Empuls is the All-In-One Solution for Employee Engagement. Improve employee productivity, performance & retention with an easy to use engagement application. Want to know more? Book a demo or start a free trial.

Free Guide on  Why should organizations invest in a well-designed Employee Engagement Program?

Like the article? Spread the word

What is a blog post?

Blog posts allow you and your business to publish insights, thoughts, and stories on your website about any topic. They can help you boost traffic, brand awareness, credibility, conversions, and revenue.

What is a blog post?

Blog posts allow you and your business to publish insights, thoughts, and stories on your website about any topic. They can help you boost traffic, brand awareness, credibility, conversions, and revenue.
Text Link