There has been a lot of discussion regarding employee benefits and how it has a direct impact on employee retention rates. It has been concluded that benefits and perks play a major role in helping an organization retain its employees. The type and the standard of benefits the company offers will determine how high or low the retention rate is.
However, there are factors that could have a detrimental effect on an employee’s work experience and overall career, even if he or she is presented with the best of benefits. Your organization could offer you some of the coolest perks like pool tables, paid night outs, gaming consoles, etc, but would it really matter to you if you are not happy with your work. Are all these benefits going to compensate if you do not have an understanding with your managers?
Management Styles Make a Difference
Sometimes, getting sick leaves without all the trouble is worthier than having an unlimited alcohol bar at the workplace. If you do not get along with your managers, or don’t feel supported by them, or are not satisfied with your salary or career growth, then none of the benefits would matter.
This is what the employers need to understand too. Just because you have some of the coolest perks on the list doesn’t mean your employees would stay. There are factors that are far more important than just a bucket full of benefits and having a good management style is one of them.
Does Management Style Really Affect Employee Retention?
Without a doubt!
According to research by Forbes, a group of employees was asked to describe the kind of boss they would like to have. The sample included answers such as ‘managers who would truly value our opinions, recognize and appreciate hard work, and offer respect against respect’. Some employees said they would love to have a managerial system where they can have one-on-one conversations for understanding and learning purposes. These answers were collected to reflect the authentic and inclusive leadership styles that are more suitable for this generation.
Employees also value managers who are great at communication, offer support, transparent, and have the ability to adapt to different styles to adjust to employees. Another study revealed how more than 50% of employees would opt for a job with a great manager instead of a job that just pays 10% higher. Naturally, it is easy to see why having a great management style can lead to a higher employee retention rate.
Ideal Management Styles for Increased Retention
Just like the employee is responsible for fulfilling the expectations of the employer, the managers too need to meet certain needs and expectations to ensure the employees opt to stay in the organization longer.
Here are the ideal management styles and why they’re successful with retention:
The extrovert style suits employees the best when it comes to increasing retention. These managers are more compassionate, understanding, and considerate about the staff. Since today’s generation is more about sharing a give-and-take relationship, they enjoy working in an environment where the employees and managers share a support network.
Extroverted managers can easily maintain happier employees and a fun-to-work-in environment since they are a part of every task and project. Instead of delegating the job, they spend time with the team, supporting the development and encouraging the input.
Another reason why an extroverted style is so popular with employees is that they’re the exact opposite of the authoritative leadership style. Instead of following a traditional authoritative structure, they give everyone a chance to participate and lead. Under this management style, employees feel more involved and empowered, which boosts their motivation and loyalty to work.
Their innovative management style cannot go wrong with the employees. These are the type of managers that employees enjoy working with. The best part about democratic managers is how open they are to ideas and feedback. Their focus is mainly on the success and growth of the business and therefore, they wouldn’t mind involving other people in the decision making process as far as the ideas are innovative.
It wouldn’t be wrong to state that democratic managers are often influenced by the employees, their way of work, and their ideas, which makes the decision-making task even more effective. As a team, both democratic managers and employees are aligned towards the same goal.
This is a management style where the managers do not hesitate in placing a lot of trust in the employees. This is an attitude that works perfectly with the employees. These managers believe in the skills and hard work of the employees and can easily delegate tasks knowing that their employees will give their best shot without the need of constant assistance.
Since it is very important for employees to feel trusted and valued, this management style works great for them and helps improve employee retention.
Conclusion: Management Styles can Make or Break Companies
Your management style decides whether you experience business and retention success or failure. Make sure to always trust your employees, provide them the best employee benefits such as an income driven repayment plan, and improve your benefits management overall.