Give Them a Reason to Stay: Promotions, Raises, and the Science of Employee Retention
Job hopping is on the rise. As a result, hiring, onboarding, and training costs are increasing. Therefore, employee retention is more important than ever.
With more employees changing jobs, employers must find ways to encourage them to stay. Promotions and raises can help.
Value of Internal Talent
Research shows that employees who receive a promotion within the first 3 years with a company are more likely to stay than those who do not advance. Experiencing upward mobility encourages employees to continue contributing value.
Internal promotions help retain employees with institutional knowledge. Understanding the culture and business operations supports efficiency and productivity.
Organizational Impacts of Employee Promotions
Promoting top talent positively impacts companies in diverse ways:
- Enhanced Employee Engagement and Productivity. Promotions represent employees’ hard work and dedication. Seeing their efforts acknowledged and rewarded fosters loyalty and commitment. Motivated employees regularly increase their contributions and organizational impact.
- Leadership Development and Innovation. Increased responsibilities help employees develop leadership skills and contribute to innovation. Leaders who get promoted deeply understand business operations and make informed decisions that strengthen the bottom line.
- Improved Talent Retention. Seeing a clear path for advancement encourages employees to remain long-term. Nurturing talent and promoting from within create a culture that attracts top performers. Hiring employees whose values align with the company’s strengthens performance.
- Positive Company Culture and Employer Brand. Companies that value and reward internal talent create a positive work environment, culture, and employer brand that attracts external talent.
Methods for Internal Promotions
The following methods support internal mobility:
- Prioritize Mentorship. Match new hires with mentors on Day 1. Help each new employee develop the necessary knowledge and skills to take on additional responsibilities, increase their value, and earn pay raises and promotions.
- Increase Managers’ Authority. Encourage managers to recognize and develop top talent for more senior roles.
- Emphasize Continuous Performance Improvement. Support regular leader check-ins with their teams to ensure they continuously learn and develop to help reach company goals and advance their careers.
- Participate in Strategic Succession Planning. Begin developing leaders of tomorrow today.
Additional Employee Retention Strategies
The following strategies can help increase employee retention rates:
Express Employee Value from Day 1
Employees who feel valued, respected, and appreciated from the start are unlikely to find opportunities elsewhere. Therefore, managers should regularly check in with their employees to let them know they care.
Thank-you cards, wellness incentives, gift cards, and happy hours acknowledge and express appreciation for employees. These activities elevate productivity, job satisfaction, and company loyalty.
Practice Pay Equity and Salary Transparency
Pay transparency shows employer openness with employees and supports an equitable work environment. These activities ensure that promotions come with pay raises aligned with the increased responsibilities. These factors strengthen employee trust and retention rates.
Demonstrate Career Paths
Managers should talk with their employees about their professional goals to map out organizational career paths. They also should provide customized resources and support for promotions. These activities strengthen communication and trust between managers and employees and encourage long-term tenure.
Get Help Strengthening Employee Retention
Partner with PrideStaff to hire employees who stay with companies long-term. ​​​Contact your local PrideStaff office today to get started.​
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