5 ways to increase employee retention
Thursday, February 14, 2019
Are people leaving your organization faster than you can fill jobs? If so, you’re not alone. But that doesn’t mean it’s OK!
Steady, unwanted employee turnover leaves you in a constant state of recruiting, encouraging those who’ve stuck around to remain, plus training and re-training. Not to mention the exorbitant cost of employee turnover.
It’s been said that when an employee leaves, it can cost a company up to three times that employee’s annual salary. Think of what you could do with all that extra time and money you’d be saving if you were able to prevent employees from departing.
A recently published report by Tinypulse pored over data collected from more than 25,000 employees around the world and found five main reasons why employees were flying the coop. Here are five key takeaways from the report:
1. Bad managers send people fleeing.
According to the report: "Employees who rate their supervisor’s performance poorly are four times as likely to be job hunting." Wow! Can you believe it? I can, as I’ve fled my share of lousy bosses. I’m sure you have as well.
Conversely, employees are far more likely to stick around if they work for a great manager who is an empathetic listener and good communicator.
2. Appreciation matters.
Workers who feel undervalued, overlooked or ignored will quickly jump ship. Tinypulse found that nearly 22 percent of employees who felt underappreciated at work had interviewed for another job in the prior three months. My guess is that many may have done this on company time, which is also somewhat disconcerting.
What is your company doing to provide consistent, meaningful recognition for a job well done? If the answer is nothing, why not? A simple thank you or a shout out in front of peers or customers will go a long way. And here’s the thing. These simple gestures won’t even cost you a dime!
3. Employees crave work-life balance.
Tinypulse’s data revealed that employees with good work-life balance are "10 percent more likely to stay at their companies."
Workers — both young and old, want more autonomy and freedom in how work gets done. Case in point. I received an email from a guy who is considering leaving his job with a prestigious company. He’s a key player making well over $200,000. He told me he couldn’t take the stress anymore of working 24/7.
That’s why flexible schedules are becoming an essential component of retention. Proper staffing levels are needed as well.
4. In many cases, culture supersedes compensation.
Tinypulse writes: "When we asked employees if they would quit for a 10 percent salary increase, those who believed their company had a higher purpose were 24 percent less likely to accept the offer."
Staffers will often take less money to work for a company that offers the opportunity to do meaningful work. So, what are you doing to help your employees connect the dots, in terms of what your company does and your higher purpose?
5. Development opportunities are like talent magnets.
The report states: "Our findings reveal that employees who feel they are progressing in their career are 20 percent more likely to be still working at their companies in one year’s time." That’s pretty impressive.
You don’t have to enroll someone in an $85,000 a year executive MBA program for them to feel like they are growing. There are a ton of other options including MOOCs — free online learning programs, local conferences, and webinars that can be viewed from the comfort of one’s office chair.
If retention is a concern for your organization, then now’s the time to start taking steps so you can prevent the people you still have from leaving.
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