High employee turnover poses a significant challenge to businesses worldwide. In fact, an overwhelming 45.8% of business owners encounter difficulties in retaining their current workforce.
As companies try to hold onto employees, other team members and overall work output become impacted. This is likely why over 43% of Fortune 500 leaders point to low productivity as their biggest challenge in 2024.
But what are the most effective solutions to fix these issues? In this article, we’ll examine the HR initiatives that companies are implementing to attract, retain, and provide better support to employees. First and foremost, we’ll explore the contentious four-day work week.
HR initiatives to attract, retain, and support employees
To resolve employee retention challenges, companies are implementing strategies to foster a more appealing and supportive work environment. The four-day workweek, among other things, has particularly gained traction. Here we explore it alongside other solutions.
Impact of the four-day workweek
An overwhelming 89% of US workers express a preference for a four-day workweek, indicating strong employee demand for this flexible arrangement. Meanwhile, for employers, the benefits are tangible: increased productivity and reduced overhead costs in the case of in-person work.
Microsoft Japan is one such company that reported a remarkable 40% boost in productivity after adopting this model. Similarly, Perpetual Guardian noted a 20% increase in employee engagement and a 78% improvement in work-life balance.
Beyond improving work-life balance, this four-day workweek model has also shown potential in reducing burnout and improving employees’ mental health.
Unlimited paid time off (PTO)
Given that the average American employee is entitled to only eleven days of paid vacation a year, and some may not accrue PTO at all, it’s no surprise that generous time-off policies can help companies retain their staff.
Such flexibility not only enhances employee morale but also reduces burnout, and increases job satisfaction. Companies with unlimited PTO policies, like Netflix, often experience higher retention rates and overall improved performance.
Remote work
The shift to remote work has been transformative and many employees now consider it a must-have when choosing a new job. In fact, a survey reveals that 87% of jobseekers would readily choose a flexible work option if given the choice.
The remote work model also benefits employers by offering increased flexibility, increased access to talent, and a 9% increase in productivity.
Companies like Coinbase and Shopify have successfully transitioned to remote work, reporting sustained productivity and high employee morale.
Maximizing productivity with a limited workforce
While strategies such as the four-day work week are great for employee retention, many employers cite concerns over productivity.
Take the example of businesses in Greece. They are dealing with a shrinking population that’s feeding into a severe talent shortage and hampering business growth and productivity. To combat this, the Greek government implemented a six-day workweek, a measure designed to maximize output despite labor constraints.
The question arises: Is this the most effective way to boost productivity? Or does it risk alienating employees and pushing up attrition rates?
Above all, the approach raises concerns about employee burnout and decreased job satisfaction. While productivity might spike initially, sustaining it over time could prove challenging as fatigue sets in. In the next section, we explore a better solution to maximizing productivity in small countries or teams.
A better solution: Global hiring
Global hiring presents the perfect solution for maximizing productivity and retention. Companies can tap into talent outside of the limits of the country and implement remote work measures that support employees.
What’s more, by expanding the search for talent across international borders, companies stand to gain access to a diverse array of skilled professionals who can introduce fresh perspectives and innovation within the team.
To reap the benefits of global hiring without the stress, look to an Employer of Record solution like Multiplier. We hire, manage, and onboard your employees so you don’t have to set up a legal entity or worry about ensuring your employees have a great experience.
We set up payroll, administer local benefits, and handle tax — all in a way that is compliant with local laws.
Partner with Multiplier to ensure your workforce is compliant, supported, and ready to drive your business forward. Let us handle the complexities so you can concentrate on company growth and supporting your global teams.
