3 ways to improve employee retention at your insurance agency
In today's environment, companies need to adopt a much more proactive approach when it comes to employee retention.
Remember the days when athletes, regardless of the sport, would spend their entire careers with one, maybe two teams at most? For better or worse, the days of ballplayers whose names are forever associated with a particular team or city are long gone.
Today, that same dynamic shift is underway in the workplace. Lawyers or accountants who used to make partner at a firm and stay there for entire careers now routinely jump from firm to firm in search of the next best thing.
Related: 4 keys to retaining a multigenerational workforce
The tech community is witness to constant personnel movement as companies grow rapidly only to be acquired or merge with other firms providing complementary services. Millennial workers in particular have a reputation for constantly being on the prowl for that next job.
Recognizing that company loyalty doesn’t mean what it used to, businesses — particularly small businesses — have been forced to come to grips with the fact that shorter employee tenures is the new norm. While salary, benefits, retirement plans and vacation will continue to play a key role in attracting employees, companies have begun to adopt a much more proactive approach when it comes to employee retention.
1. Perfect your onboarding process
According to the Society for Human Resource Management (SHRM), 70% of workers say they are more likely to stay at their new company for three years or more if they experienced a smooth, favorable application process. Clearly, first impressions do matter. Unfortunately, the onboarding process at many businesses is often hurried, with new employees quickly slotted into vacancies and expected to come up to speed on their own. That approach is counterproductive.
New employees can’t hope to understand their new company’s culture, mission, or the nuances of working there by checking out the company website. Moreover, new workers are likely to be turned off by that “learn by doing” approach, which could hasten their search for that next job.
Instead, new workers need to get off to a good start by understanding who their new employer is and what is expected of them on-the-job. Management, for its part, needs to ensure that its onboarding process is as streamlined and engaging as possible. While the application process may be the first critical step for a company’s future workers, the hiring process doesn’t stop there.
Companies need to take the time to properly introduce new employees to key personnel and processes. Open, frequent communications are essential in making new hires feel more comfortable and confident from day one on the job, while providing them with a clearer sense of both their role and how they fit into the company’s future plans.
2. Emphasize professional development
Of equal importance is the need for companies to create a detailed, mutually-agreed-upon plan for each new employee’s professional development. According to a recent Gallup Poll, only about a third of new employees feel fully engaged in their new jobs. That’s disappointing, but perhaps not unexpected, when you consider the way many companies often rush new workers through the onboarding process and into the job.
As part of that regular review process, companies can keep employees updated on the various certification and training opportunities available to them. With that in mind, many businesses now offer tuition reimbursement programs to employees, as well as paid leave to complete relevant courses — all of which encourages workers to stay with the company longer.
3. Engage often
Today’s employees want to know that the work they are doing is important to the company’s success and that there is a career path for them. Working together on a professional development plan sends a powerful message that the business cares about the individual worker and wants to help them in attaining their personal and career goals.
To that end, many companies are replacing year-end reviews — which too often are rushed — with regular, one-on-one meetings to review employees’ growth and establish short- and long-term goals. Such meetings also provide an ideal opportunity to provide constructive criticism, feedback, and praise.
A flexible workplace should be considered
Beyond an engaging onboarding process and regular reviews, companies should consider adopting a flexible workplace. The days of working 9-to-5 have largely been replaced by flexible hours, remote work options and even sabbaticals.
Providing a flexible, mobile work environment is likely to produce not only happier employees, but also a more productive workplace and increased opportunities for retaining those productive workers for a longer period of time.
It’s also essential for companies to regularly remind employees that their ability to do their jobs well is important to management. To that end, businesses should invest the time and money to stay up-to-date with on-the-job technology. Similarly, clear, step-by-step processes should be mapped out and tracked digitally.
Placing digital workflows behind all business operations ensures structure, consistency and rigor, while eliminating unnecessary barriers to obtaining the information needed to do the job. It also puts companies in a better position to use data from and about staff, assess performance, improve workflows as problems are identified, and avoid bottlenecks.
Taking these steps won’t eliminate employee turnover. That may be impossible in today’s working world. But companies will be in a better position to retain workers longer and create employer advocates — former employees who enjoyed working for the company and are willing to tell others about their positive experiences there. These champions can prove to be an essential tool in attracting other workers who will bring a similar positive work ethic into the company.
Related: 4 ways the insurance industry can win the war for talent