Maximize Productivity While Ensuring High Employee Retention Rates

Organizations are under immense pressure to maximize productivity while ensuring high employee retention rates. It’s a delicate balancing act — focus too much on productivity and you risk burning out your employees, leading to high turnover rates. Conversely, an excessive focus on retention without regard to productivity can lead to complacency and a lack of competitiveness. Achieving the right balance is crucial for an organization’s success and sustainability. 

The Cost of Imbalance

High turnover rates come with significant costs, both direct and indirect. Direct costs include recruitment, hiring, and training of new employees, while indirect costs include loss of institutional knowledge, decreased morale, and reduced productivity during the transition. 

According to the Society for Human Resource Management (SHRM), the average cost to hire an employee is $4,129 and it takes about 42 days to fill a position. However, the true cost of turnover goes beyond these tangible expenses. It also includes the lost productivity while the position is vacant and the time it takes for the new employee to reach their full productivity level.

On the other hand, an excessive focus on maximizing productivity can lead to employee burnout, decreased job satisfaction, and, ultimately, higher turnover rates. According to a survey by Gallup, burned-out employees are 2.6 times more likely to be actively looking for a new job. 

Strategies for Achieving Balance

Achieving the right balance between employee retention and productivity requires a multifaceted approach that addresses various aspects of the employee experience. Here are some strategies that can help organizations maximize productivity while ensuring high retention rates: 

Implement Flexible Work Arrangements

The pandemic accelerated the adoption of flexible work arrangements, with many organizations allowing employees to work from home or adopt hybrid work schedules. 

In 2024, we are seeing a rise in employees returning to the office, either full-time or with a hybrid schedule. Continuing to offer flexible work arrangements will lead to increased job satisfaction and higher employee retention rates. A survey by Glassdoor found that 80% of employees would be more loyal to their employers if they had flexible work options. 

Provide Opportunities for Growth and Development

Continuous learning and development opportunities can increase employee engagement and loyalty while also maximizing productivity. According to LinkedIn’s 2018 Workforce Learning Report, 93% of employees would stay at a company longer if it invested in their careers. 

Organizations can offer a variety of development opportunities, such as online courses, mentorship programs, performance coaching, and cross-training.

Prioritize Employee Well-being

Employee well-being is directly linked to productivity and retention. A study by the Corporate Executive Board found that employees who believe they have a good work-life harmony work 21% harder than those who don’t. 

Some ideas for organizations to promote employee well-being include implementing wellness programs and prioritizing a healthy work-life balance through whole-person coaching.

Recognize and Reward Employee Contributions

Regularly acknowledging and rewarding employees’ efforts can lead to increased motivation and job satisfaction. According to a survey by Glassdoor, 81% of employees said they are motivated to work harder when their boss shows appreciation for their work. To maximize productivity, organizations can implement formal recognition programs, offer performance-based incentives, and regularly acknowledge employees’ contributions in team meetings. 

Activate 180’s Whole-Person Approach

Activate 180 offers a comprehensive approach to addressing these challenges and helping organizations achieve the right balance between employee retention and productivity through:

  1. Customized coaching: We implement customized coaching plans based on the individual employee’s goals and common themes impacting your business and culture. These plans address specific areas of opportunity, such as efficient and effective work, passion for the job, and goal clarity. 
  2. Monthly culture audits: We conduct monthly culture audits to highlight opportunities for improvement identified through coaching your entire employee base. We consult and collaborate with your leadership team to address these opportunities and ensure that the implemented strategies are having the desired impact.
  3. Employee surveys: We conduct employee surveys to gauge satisfaction, engagement, and alignment with the company’s goals and values for high employee retention.
  4. Continuous improvement: We continuously monitor progress and adjust the coaching plan as needed to ensure that the employee participants are growing and, in turn, the organization is moving toward its goals. 

Case Study: Information Technology and Services Company

A company in the information technology and services sector was struggling with inefficiencies, communication skills, and managing workplace conflicts. Activate 180 identified these challenges during an initial onboarding call with key leadership, employee opt-in surveys, and monthly culture audits. A customized coaching plan was created to address these specific areas of opportunity: 

  • Efficient and effective work: Foster a healthy sense of urgency so employees can work more effectively and maximize their productivity. 
  • Passion for work: Increase engagement, motivation, and drive at work by helping employees feel valued at work. 
  • Goal clarity: Help employees set a clear career path by working toward defined goals.

After a three-month pilot, the employees were surveyed again and their responses skyrocketed since the initial intake:

  • 78% increase in efficient and effective work 
  • 42% increase in passion for work 
  • 35% increase in goal clarity 

Moreover, the monthly coaching sessions uncovered additional opportunities for improvement:

  • Work-life balance: Address long work hours and heavy workloads, while also having leadership mirror this behavior change. 
  • Communication: Promote transparency and stop any covert conversations. 
  • Empowerment: Provide support in decision-making. 

A roadmap was created to tackle these opportunities successfully and ensure continued progress.

Toward a More Productive and Committed Workforce

Balancing employee retention and productivity is critical for an organization’s success. It requires a whole-person approach that addresses the personal and professional aspects of an employee’s experience, from flexible work arrangements to opportunities for growth and learning, employee well-being, and recognition and rewards. 

Activate 180’s customized approach helps organizations address these challenges and maximize productivity.  By continuously monitoring progress and adjusting strategies as needed, organizations can create a happier, more productive workplace and ensure high employee retention rates.

To learn more about how Activate 180 can help your organization, schedule a call with us

Tyler Peitzmeier

Tyler serves as the Director of Partnerships at Activate 180, where he leads the company’s sales initiatives. Tyler supports businesses in achieving their objectives for enhanced performance, profitability, and overall fulfillment for their people through innovative and affordable one-on-one coaching for every employee.


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