Seven Steps To Increase Employee Retention

1. Audits with behavioral assessments, cognitive reasoning assessments, job simulations, and hard skills assessments (e.g., computer skills, etc.) to objectively define the core competencies required for success in each role (competency modeling). This helps in providing a realistic job preview for candidates and managers. Oftentimes what managers think they need for a certain role is different from that they actually need.
2. Implement a well-designed assessment and selection process. Include behavioral assessments and structured behavioral interviewing techniques to increase the likelihood of hiring people that can, and will, do the job at a high level in your environment and for your managers (job fit assessment).
3. Provide good employee orientation. The people you hire today are potentially your greatest resource for corporate success in the years ahead. As a senior leader, your participation in new employee orientation sends a vital cultural and leadership message: "We’re all involved here in the drive toward what we want to be in the future." Everyone—even the newest employee—has value.
4. Implement programs for employee training and development. Provide ongoing professional development to show your willingness as an organization to develop your greatest asset—your people.
5. Improve manager and employee relationships. Concentrate on the people that stay with you to learn what makes them happy … then give them more of it! "People leave managers, not companies. If you have a turnover problem, look first at your managers.
6. Provide an equitable or fair pay system. Be competitive!
7. Encourage succession planning. Identify roles for which employees may be suited in the future and work with them on designing their succession plan within the organization. Invest in cross-training, job shadowing, coaching, mentoring, and cross-experience.

In summary, many organizations are already using several of the aforementioned steps, but may be lacking or deficient in the other steps. Each step is critical to the overall success of a comprehensive employee retention plan.