What Makes Employees Stay: Create a Positive Work Environment

There were a few work trend predictions at the start of the year. They have all since become a reality for businesses wanting to stay competitive. They warned of increased competition to attract and retain talent, workforce exhaustion, and controlling costs in an uncertain economy. 

Employees still hold most of the power despite job layoffs and economic uncertainties. A fact that proves the adage that workers are a company’s most important resource. They are crucial to increasing profitability which ultimately determines a company’s success. 

If, like most companies, this is your goal, you’ll need to understand what makes employees stay. Knowing this ensures you can retain your best and brightest talent. This article provides a comprehensive outline of what makes employees stay with a company and will help you determine how to keep good employees from leaving.


The Power of Employee Retention 


Employee retention is an organization's ability to maintain its workforce to ensure continued stability. It’s measured based on the level of employee turnover. An excellent retention rate for any company would be 90% or higher. That means that the average turnover rate should be 10% or less.

Unfortunately, experts are predicting a voluntary turnover rate of 35%. That can adversely affect workplace productivity and impact customer service and revenue. 

These effects are more notable when a long-standing employee leaves. They usually have years of company and industry knowledge. The loss can disrupt processes and affect productivity, as training a current or new employee would take time. 

Employee turnover also increases expenses. There is a cash outlay involved in advertising a position and hiring and training a new employee. Recruiting a new hire costs most companies between $4,000 and $20,000. That does not include the person’s salary and benefits. 

The key to avoiding this is to aim for the ideal employee retention rate. Doing this allows you to enjoy the following benefits:


Reduced Costs

Experienced employees require training and development. It’s an investment that’s a fraction of the cost of hiring a new employee. Organizations spend an average of $1,280 on training an employee. Not only is this less than hiring a new employee, but it also increases the skills of current employees. A company that takes an interest in employee development helps motivate them to stay.

Increased Knowledge

Committed employees usually devote years to a company and contribute to its success. Ongoing training can be a significant factor that makes them stay. Years of developing their expertise in various positions make them an organizational asset. These employees become invested in the company’s success and will do their part to achieve this.

High Level of Engagement

Training and development and other activities can increase employee engagement. Many experts believe this is the key to better employee retention, as at least 44% of engaged employees are likely to stay with a company.

Better Company Culture

Higher employee engagement rates also improve your company’s culture. A good company culture improves retention, increases productivity, and enhances your brand. The cycle continues and increases the enjoyment employees experience working for your company. Employees will not only stay but also let others know what a great employer they have. That can help attract suitable candidates when you need them.

Improved Morale 

When there’s a high employee turnover rate, it affects the workers who stay with the company. They lose work colleagues and may have additional responsibilities placed on them as a result. That can affect morale. 

Having a high employee retention rate increases positivity and can boost spirits. Employees want what’s best for the company and work together to achieve a common goal.

Increased Productivity

Employees working together increases productivity. Employees who have enhanced their skills during their tenure help to keep productivity at an optimal level. Newer employees see their work ethic and try to achieve the same.

Enhanced Customer Service

How an employee works and treats customers can reflect their level of satisfaction. Customers who experience a high level of service will continue to buy or use your product. They’ll also recommend it to others. That positively affects your bottom line.


What Makes Employees Stay


The answer lies in knowing how to keep employees happy and motivated. Various factors contribute to this. The importance of each will differ for every employee. However, they all affect whether an employee stays or leaves an organization.


1. Compensation 

Employees want to feel valued for their contribution to an organization. Providing them with a good salary and excellent benefits is fundamental. That also allows them to satisfy their basic needs. The ability to take care of themselves and their families can eliminate stress.

That is a motivating factor for them to come to work and perform every day. It can even be the key to how to make your employees happy. However, a good salary alone won’t sustain employee motivation and happiness. There must also be other value propositions.

2. Training and Development

Most employees want to advance in their careers. They want to contribute and achieve both company and personal milestones. Continuous training and development can help them do this. 

Training also helps employees be more effective and efficient in their roles. It also signals to them that your organization cares about their development.

3. Flexibility

This is now a significant negotiating element for both current and new employees. Hybrid workplaces currently exist and are working effectively. Employees see this flexibility as a major element of having a work-life balance. 

That could pose a challenge as you navigate how to manage your employees in this new environment. However, a shift in management styles and the use of technology can make the transition easier. It could also be the key to dealing with an exhausted workforce. It can help alleviate stress and allow employees to better balance their time at work and home. 

4. Appreciation and Recognition

All employees receive a salary. However, it's essential to go further and recognize them for their unique contributions. Otherwise, you risk them feeling undervalued, despite being compensated adequately. 

Being rewarded elicits a physical response in the body. Neurons in the brain release dopamine, which creates a euphoric state that the person inevitably wants to experience again. That can drive a person to continue achieving, which benefits the company.

5. Employee Satisfaction

Working towards and achieving a goal can be highly satisfying for an employee. It highlights their strengths and shows their value to the organization. It helps to know how to do the job well and how the role contributes to the company's overall success. Training helps to motivate. Hiring the right person for the job is also essential. They should not only fit the role but the organization's culture as well.

6. Sense of Purpose

An employee who knows how they contribute to the overall success of your organization will have a greater sense of purpose. Knowing their role can affect an outcome will drive them to ensure a positive one. They will strive to achieve their goals so the company can stay within its target. This sense of responsibility can help to motivate employees.

7. Greater Autonomy

An employee should know their role. They should also have the relevant training, tools, and resources. With this, they'll naturally progress to having and wanting greater autonomy. It’s an excellent way for management to demonstrate employee confidence and trust. Creating the right balance means employees know management is available if needed.

8. Effective Management

Successful management facilitates autonomy. It also ensures the fair treatment of employees. 

There should be rewards for hard work. However, there should also be consequences for non-performance. Management should be consistent and ensure that all employees are contributing effectively.

There should also be open communication. Employees should feel comfortable discussing issues knowing management will handle resolutions professionally.

9. Being a Member of a Cohesive Team

A continuous learning environment can motivate employees. That doesn’t only have to be a result of structured training programs. Employees of a cohesive team can also learn from and share their talents with other team members. That not only helps them to work even better together, but it also promotes a sense of belonging.

10. Honesty and Integrity

An environment that promotes honesty and integrity leaves little room for misinterpretation. Employees will know they won’t need to compromise their values while doing their job. The organization's standards, codes of conduct, and ethics will also reflect this. A company with well-defined values will retain good employees and attract loyal customers.


How To Keep Your Best Employees


Are you wondering how to keep employees from leaving or how to convince an employee to stay? Your company may need to take another look at its employee retention strategies. The goal should be to create an environment where leaving becomes a difficult decision or a last resort for an employee. That occurs if an employee loves your organization.

You can do a few things to achieve this:


Create An Amazing Physical Environment

Humans are tactile beings. Make the physical work environment one they’re excited to visit daily. That entails choosing the right colors, layouts, breakrooms, and amenities. These should be conducive to productive work and make the office fun.

Compensate Well

Let your employees know you value them by making your salaries the industry standard. That singles you out as an employer willing to hire the best and pay them well. Once your scale is set, ProService Hawaii can ensure employees receive payment on time and receive all their bonuses and benefits.

Promote An Environment That Fosters Learning

Your employees should feel they can express their views and provide feedback. That is an excellent way for teams to learn from one another. Management should be open to this and encourage respectful exchanges. They should also accept alternative ways of achieving the same result as long as it’s positive.

Take Care of Your Employees and Their Loved Ones

Many difficulties employees experience performing their work are often due to stress at home. Having a competitive compensation package goes a long way. It can help employees take care of their families. Having great health benefits also provides peace of mind.

ProService Hawaii can help you adequately support your employees’ medical needs. That can set you apart as a preferred employer.

Knowing how to keep employees from quitting requires considering all the factors that will encourage them to stay. These will also include proper training and development, flexibility, and recognizing outstanding performance.

Retain Top Talent with ProService Hawaii


It has and will always make sense to invest the most in your most valuable resource. Great employees can ensure your company’s success. What makes employees stay involves providing them with the tools and resources to perform their best.

ProService Hawaii can help with this. Our solutions include Hawaii payroll services, employee benefits, HR and Compliance, and more. We are dedicated to assisting employers in succeeding in Hawaii and will ensure you do too! Learn more about what we can do for you by contacting us today!



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