Workplace factors that impact employee retention

Happy employee surrounded by greenery.

The idea of a job for life is gone, especially in the fast-paced world of startups. Turnover is one of the greatest problems facing companies today: in Berlin, the average tenure of a developer is just 1.4 years. This means employers have to work harder to keep their workforce satisfied.

Switching costs for employees are lower these days, and workers are more aware of what other companies can offer. On top of this, it's easier than ever for hiring managers to connect with your top talents and steal them away: a single LinkedIn message can see your best performers take flight. The so called ‘quitting economy’ has seen the marketization of employees as commodities in themselves—ready to jump ship whenever a better opportunity arises.

Of course some amount of churn is inevitable. But low retention rates damage business. If your company is suffering from high turnover, check out these key workplace factors that impact employee retention (spoiler: plants are definitely one of them).

 

Employee health and happiness

It might seem obvious, but employees who are content are far less likely to seek out new positions. Workers who recorded high scores in general well-being levels showed a 35% lower turnover rate than those who self-reported as dissatisfied or unhappy. 

There is a much greater focus today on workplace benefits that nourish the body and the mind. From gym memberships and healthy food options, to wellness rooms, standing desks, and indoor greenery, workers are looking for employers who take their well-being seriously. A survey of people working in the tech industry found that 93% of employees would stay longer at a company that offered healthier workplace benefits.

Employees who enjoy spaces filled with natural features such as living plants reported 15% higher levels of overall well-being. Making sure your workers are happy and healthy not only reduces turnover—it will increase employee productivity too. Office plants bring these benefits (and many others) to your workplace, making employees more likely to stay.

Flexibility and Diversity

Recognizing that 9 to 5 doesn’t work for everyone will help you hold onto your talent. The current generation of workers places far greater importance on flexibility than their predecessors. Allowing employees to balance their working day with the other responsibilities in their lives will promote job satisfaction. 

There has been a marked rise in job shares and the number of people working part time, and 38% of German businesses now allow employees to work remotely. The advancement in tools such as Slack, Zoom, and Google Hangouts, has made working from home much easier—and more productive. Responding to your workforce’s desire for flexibility will boost happiness and reduce stress, making employees more likely to stay at your company.

Greater flexibility helps to foster a more diverse workforce, and allows every employee space to grow. The positive impact of diversity on company profits has been well-documented, but increased diversity also helps reduce turnover. Employees say that an inclusive and diverse environment is central to what they want from their workplace—so creating a welcoming space for people of all backgrounds will make your workforce want to stay.

Two colleagues in the office with plants.
 

Hiring and Onboarding

Every interaction with your company counts: this means efforts to improve employee retention should start from the very beginning. New hires turnover more quickly if their expectations of the role and the company are not met, so it’s important to provide a realistic impression of the job during the recruitment process. 

Effective onboarding should be central to any retention strategy. Your workforce wants to feel valued and supported from the first day of their tenure, and companies are starting to take note of this, with a handful of great tools like Personio now on the market. The more interactions with other team members and stakeholders during the onboarding process, the more embedded new hires will feel, making them far more willing to stay on.

Compensation

Of course wages are a factor in whether employees choose to stay at a company or not, but higher pay is only a successful strategy in the short term. Other employee retention factors such as relationships with management, opportunities for development, and in-office benefits are far more influential. This is good news for smaller companies that are unable to compete with big businesses in terms of salary benefits.

That being said, workers who aren’t being adequately rewarded for their efforts will turnover more quickly. Paying top performers what they’re worth gives greater satisfaction to these employees and will increase retention—nobody wants to feel undervalued at work. 

Office environment

Creating a space where employees will thrive is central to retaining your best workers. In a survey of 200,000 employees around the world 77% of respondents stated that natural light was important to them, but only 58% were happy with the levels of natural light in their workplace. Air quality was important to a similar percentage of employees, but only 38% were satisfied.

Having plants in your office can improve employee retention and brings benefits to both your workers and your business. People connect to the natural world, so adding a touch of the outdoors to your office will increase engagement, happiness, and cognitive function. And it doesn’t take much—one plant per square meter will produce these positive effects. 

Plants also improve air quality, act as destressors, reduce noise pollution, and can be used to divide your office into different areas. Having spaces where employees can relax, or meet to collaborate and share ideas is crucial to the happiness of your workforce. With its influence on well-being, health, and connection, designing an attractive office environment is one of the most important factors that influence employee retention in startups.

 

Plantclub.io provides you and your colleagues with the benefits of plants, wherever you work. Rent office plants and transform your space into a green oasis, with flexible monthly membership options to suit your size. Diversify your employee perks with a dedicated company store, where you can give green gifts and your team can buy plants for their home office. Book a time to chat with us today.

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