The cost of employee turnover is staggering. A recent study shows that the average price of losing just one team member is $125,000. Another notes that attrition results in productivity losses of 65 to 75 percent annually for each vacated position.
Now that the recession is behind us, an increasing number of employees are actively seeking to leave their current jobs for greener pastures. About 40 percent of today’s employers expect to lose top talent in the months ahead – and more than one-fourth of workers plan to change jobs within the next year or so. Since the recession, the number of individuals quitting their jobs has jumped by 46 percent.
Even more sobering:
- Only one-third of employees at the average company say they are fully engaged in their work.
- Forty-nine percent note that they are not engaged and 18 percent report that they are actively disengaged.
Take Action Now
Addressing turnover must be an integral part of your workforce planning strategy. Understand why employees seek to leave, so you can positively affect future retention. At the same time, enhance your employer brand.
In an increasingly competitive business world, A-level employees are in high demand. If you fail to keep your best performers happy, you’re doing your competition a huge favor by filling their talent pools. Keep these tips in mind to increase retention rates and continue to land top talent:
- Create the right culture. Your culture must match the type of employee you hire. Values, beliefs and long-term goals need to align. Skills can be learned on the job, but the right cultural fit can neither be bought nor taught.
- Avoid career hoppers. There’s nothing wrong with someone switching jobs, if it provides career advancement. But avoid career hoppers, who make changes for inadequate or suspicious reasons. Look for future leaders who are interested in growing with your company, versus outgrowing it.
- Offer robust training and development. Invest in helping your employees to grow, as well as build and maintain their professional credentials. When you take your team members’ advancement seriously, they see it as an investment in their career and are more likely to remain loyal as a result. Plus, they spread the word to others just like themselves: The superstars you want on your team.
- Provide ongoing guidance and feedback. Be sure your employees are fully aware of their responsibilities and how they’re doing when it comes to performance. If an individual is confused about their role within your organization, they’re more likely to become disgruntled and begin searching for something else.
- Recognize and reward. Managers often spend too much time on employees who are struggling or need discipline. This leaves the best ones neglected. Over time, this festers and turns into toxic resentment. Be sure your managers appropriately and regularly recognize top performers.
- Be flexible. It’s especially notable among millennials, but applicable virtually across the board: Employees are demanding more flexibility when it comes to working hours, and balance when it comes to their personal versus professional lives. If you expect a person to be available to take an emergency call or put in extra hours on a weekend project, be understanding and agreeable when they ask for a Friday off or need to work from home.
Let the workforce development experts at Select Group, Inc., partner with you to develop the strategy you need to attract and retain industry-leading talent. Contact us today to learn more.