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Three Focus Areas to Create an Organizational Culture that Fosters Retention

Date Published

May 25, 2017
4 minute read

Employee turnover is a costly problem for today’s organizations. Finding and training a replacement is both time-consuming and expensive, and often, important knowledge is lost when a good employee resigns. Organizations that value employee retention seek out ways to build loyalty and engagement in order to prevent the loss of time, money, and knowledge.

Here’s how today’s leading organizations are creating a culture that fosters commitment and loyalty.

Strong Communication – Employees should know how their roles factor into the organization’s goals and objectives. Committed employees understand not only what they do but why it matters. According to a recent survey, 35% of executives at small (under 50 employee) companies say that their workers are unaware of the organization’s goals and objectives. Not only does this lack of awareness prevent employees from being effective in their roles, but it also fosters a culture of confusion that wears away at commitment and loyalty.

Leaders should be clear and direct in communicating the company mission and objectives to their employees not only when onboarding a new staff member but throughout his or her tenure with the organization. In addition, the best communication flows in both directions. Employees should have the opportunity to provide feedback and suggestions that influence strategic goals and planning.

Empowerment – Every employee should have the ability to support the organization’s overarching goals. If knowing is half the battle, acting is the other half. A culture of commitment requires employees to not only understand their organization’s objectives but also to act on them. Empowered employees have the autonomy to take self-directed actions that support the goals and objectives of the organization at large.

What does empowerment look like at various levels?

  • Customer-facing associates have the authority to resolve customer complaints immediately and without escalation.
  • Workers are valued and consulted prior to major organizational changes based on their significant knowledge of day-to-day operations.
  • Managers have the authority to implement strategies to boost their team’s performance.

Individuality – Respect and support are what makes each individual an asset to the organization. Every employee comes with his or her own strengths and weaknesses. Allowing employees to play to their strengths does more than just boost productivity. It also fosters morale and inspires the confidence workers need to step out of their comfort zones and expand their skillsets. According to Nanda Ramanujam on, job satisfaction increases when the job engages the “strongest personal qualities of its employees.”

An engaged workforce is a committed workforce. When your organizational culture respects individuals and positions them for success, they are more likely to feel a sense of commitment and loyalty to the organization.

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