Business

The 90 Day Retention Rule

July 25, 2022

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Bosses lean on 90-day retention rule

Between remote work and covid and more employee retention has crumbled. It is now harder than ever to obtain and retain employees. Help wanted signs litter the windows of many storefronts and businesses and a need for workers is at an all time high. Having a 90-day retention rule can actually help you keep your employees and increase satisfaction. If your company is struggling to retain employees, added perks including bonuses, sense of purpose/community, training opportunities and other benefits can help your company retain employees past that 90 day threshold. With all of that being said, you can have all of the perks in the world, and if your culture is bad, it won’t mean anything. Statistics have shown if an employee stays for 3 months they will stay for at least a year! If retention rules are properly put in place they can immensely impact your business.

What is the Retention rule?

As the name suggests, employee retention rules are set in place to help retain great employees and prevent them from quitting. As the employer it is your responsibility to set guidelines and regulations that keep employees happy. 

The goal is to have high satisfaction amongst great employees in order to keep them loyal to you and your company. Ensure you are meeting your employees needs and recognize their accomplishments and if you don’t know what your employees need, ask them!

Your business’s retention rules need to be tailored around your company’s needs and vision. Retention rules are not one size fits all and must be customized to your workforce. 

What are pros to employee retention rules?

Retention rules mitigate employee turnover. They keep your workers happy and your business running smoothly. 

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Retention policies should be straightforward and transparent so, the easier for an employee to understand the policy the better. The policy should be beneficial for both new and existing employees. You can even get employee feedback on the policy so everyone’s onboard. Here are the pros of a retention policy. 

  • Happy employees want to stay at their job. A retention policy will mitigate employee turnover and help you create long term and positive working relationships with your employees. 
  • Retention policies clearly outline what behaviors are acceptable in the workplace. They set a standard for what’s ok and not ok for employees at work.
  • Retention policies help management! Managers jobs become easier especially when employees give feedback because this creates a direct line of communication about what an employee expects in their employer.

What are cons to employee retention rules?

If retention rules are not laid out fairly, succinctly and clearly they can cause confusion for employees and can actually be detrimental to your retention. Here are the cons to employee retention rules.

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  • Retention rules may work for one department but may not encompass the needs of all departments. It can be difficult to write straightforward succinct rules when it seems every department seems to need nuances. 
  • Some employees may see retention rules as limiting their freedom. Instead of a set of guidelines to be helpful to employees this can be viewed as regulation and controlling employees through retention rules. 
  • Retention rules need to meet employee needs or else they will be ineffective. It can be difficult finding a set of rules that meets everyone’s needs.

How do the 90 days help businesses and employees?

There are a number of ways retention rules can encourage employees to stay at a company for more than 90 days.

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Allows employees to stay for a longer period of time in today’s high turnover environment

  • 90 days gives employees enough time to “prove” themselves at a company and to start feeling a sense of belonging and competency.
  • Many employers will withhold fringe benefits such as healthcare until an employee has completed 90 days at their job. This will incentivize employees to stay for benefits but also even longer after they pass their 3 month threshold

What are other ways to help keep your employees?

Employees leave a job for two primary reasons which are feeling undervalued and lacking a sense of purpose. 54% of employees who left or considered leaving felt undervalued by their company while 51% felt they lacked a sense of belonging or purpose in their position. 

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It is up to an employer to make great employees feel appreciated and that their role is meaningful. Along with retention rules employers need to be sensitive to employees needs and wants at work in order to keep them for longer than a 3 month period.

Journey Payroll & HR is here to help!

It can be difficult to juggle the logistics of your business and the innermost wants and needs of employees efficiently. Lucky for you, Journey Payroll & HR is here to help. We offer a plethora of services spanning from HR to payroll and more. Our services help you thrive so you can focus on what’s important. Contact us today to learn about more of our services, we can’t wait to work with you!


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