Even conservative figures estimate that it costs anywhere between 30% and 200%+ of an employee’s salary to replace them, with related costs in time and business performance climbing even higher. Once we attract and hire the right employees, how do we keep them?
Turnover by the Numbers
According to Catalyst:
- 33.4 million American workers voluntarily quit their jobs in 2015
- 37% of all US employees are thinking about leaving their jobs
- 32% of women in STEM positions are thinking about quitting (making them 45% more likely to quit than their male counterparts)
- 44% of Millennials are expected to leave their jobs within the next two years
Culture is Critical
One of the main considerations for employment candidates is whether they will fit in with the corporate culture. They’re likely to look to current employees for feedback and information on the climate of the organization. They’ll also be watching closely for consistency throughout the hiring process. Employees who find that the culture is significantly different than the way in which was presented will not stay long.
Recognition Matters
When external factors such as geographic location and a different industry or type of work are the reasons employees leave, there is little that the organization can do. The majority of employees leave for internal factors that can be managed, namely:
- Limited career opportunities
- Bullying and/or a negative corporate culture
- Excess workloads
- Lack of competitive recognition or rewards
Salary is rarely mentioned as a reason to leave a job, and even when it is, it’s way down the list. Results of a TinyPulse survey confirm that managers and peers have a great deal of influence over whether an employee stays or goes. Peer recognition is particularly important: employees who received low levels of recognition from peers are 11% less likely to remain in their jobs.
HR leaders and company managers now understand that employee reward and recognition programs are not just something that is nice to have – these are required talent acquisition and retention tools. And you’d better be doing more than handing out a gift card on occasion: your reward and recognitions programs must be thoughtfully structured to achieve specific goals. Management must be trained to understand the goals of the program as well as to manage the employee experience throughout the incentive program.
The battle for talent is going to get a lot tougher before it gets easier. Partnering with an experienced employee recognition provider will ensure that you’ve got all of the pieces in place to retain your key employees.
