Employee engagement and retention isn’t just a generational issue, though understanding Millennials’ workplace needs arguably has longer-term implications than for aging generations. Studies show that employers are keenly aware of the need to boost both metrics for all high-performing workers, regardless of age or demographic factor.

The top three workforce management challenges faced by organizations in 2016 were employee retention/turnover (46% of respondents), engagement (36%), and recruitment (34%) according to the SHRM/Globoforce Employee Recognition Survey. This was the second consecutive year that retention topped the list of HR challenges. It has nearly doubled as a concern since the survey began in 2012. We suspect the trend will prove to be just as strong in 2017.

The IBM/Globoforce Employee Experience Index, which collects data from employees in 45 countries, explores what it means to “Work Human,” and how appealing to human psychological needs aids employee retention. Among its findings, this study revealed that there are six core facets of a positive employee experience:

• Belonging – feeling of being part of a team, group, or organization
• Purpose – understanding why one’s work matters
• Achievement – a sense of accomplishment in the work that is done
• Happiness – the pleasant feeling arising in and around work
• Vigor – the presence of energy, enthusiasm, and excitement at work

Surveyed employees rated higher on average for happiness with their employer than any of the other core facets of a positive work experience (74%). That was followed by belonging and purpose (70%), achievement (69%), and vigor (62%).

Another interesting note about these facets of positive employee experience is that all generations report similar levels of experiences. Millennials are barely different than Baby Boomers in this regard.

Positive Experiences = Strong Effort and High Retention

Survey respondents were given an Employee Experience Index (EEI) score based on these individual facets. Employees who scored in the top 25 percent with their employer for the index achieved a 95 percent score in discretionary effort. Those who scored in the bottom 25 percent achieved a 55 percent score in discretionary effort. This huge disparity shows an undeniable correlation between positive experiences and positive effort. Satisfied employees perform nearly twice as well as dissatisfied employees.

Similarly, high EEI scores also correlate to lower turnover intention. Those in the top 25 percent of positive experiences rated 23 percentage points lower in intention to leave than those in the bottom 25 percent (44% vs. 21%). This intuitive finding will surprise no one.

What other variables are associated with higher retention rates?

Several key factors are highly determinative of employees’ desire to remain with their companies, according to the IBM/Globoforce Employee Experience Index. Here are a few of the highlights:

Organizational Integrity and Co-worker Support are two strong factors. In organizations in which employees agree the organization consistently acts with integrity, 83 percent report a more positive experience. In organizations that meet the same standard for co-workers helping one another, 77 percent report a more positive experience.

Meaningful and Challenging Work matters. An impressive 80 percent of employees report a more positive experience when the work is consistent with the organization’s core values and 81 percent do so when their job makes good use of their skills and abilities.

Recognition, long recognized by psychologists as a necessity for workplace satisfaction, is key. An overwhelming majority—83 percent of employees report a positive experience when they receive recognition for good work, and 80 percent report a positive experience when they receive regular feedback on their performance.

Empowerment—the freedom to decide and the opportunity to participate in determining how work is best accomplished—is another driver of workplace engagement, enjoyment, and retention. When employees agree that their suggestions and ideas matter, 83 percent report a more positive experience, and 79 percent report a more positive experience when they have the freedom to decide how to do their work.

Work-Life Balance also makes a substantial difference, as we have detailed extensively in the following articles previously posted:

3 Steps to a Work-Life Balance, and the Happiness that Comes with It

Hire and Retain Talent by Offering a Superior Work-Life Balance

5 Ways to Create a More Desirable Workplace

When employees agree their work schedule is flexible enough to balance their professional and personal lives, 79 percent report a more positive experience. When employees agree they have a chance to recharge when not at work, 77 percent have a more positive experience.

These are all highly actionable data points that should be put to immediate use in every company that aspires to raise retention rates. If you are in HR, or are an influencer in how your company treats employees, you can make a difference. Help your employer to see the value in designing work experiences consistent with organizational and employee values. Enable employees to better understand the meaning of their work and how it connects with those values. Empower workers to participate in decision-making, and treat performance as a continuous conversation fueled by recognition and growth opportunities.

By heeding these recommendations, you will not only face the most important HR challenge of the past two years, but you will help to overcome it.