r
The cost of employee turnover is outrageously high for the majority of businesses. When a company loses a salaried employee, it can cost anywhere from six to nine months’ worth of the departed employee’s salary to hire a replacement.
This means that if an employee is being paid an average of £35,000 a year, the cost of everything from recruiting to training expenses will be circa £18,000.
It can also discourage talented employees from joining your Company.
High turnover rates/lack of retention is one of the major red flags that individuals will look for when considering a new employment opportunity.
Companies will need to step up their game and hold onto the talented employees they worked hard to acquire. This can be done in the following ways:
The business world is evolving and the concept of management is not immune. Many of the old practices no longer apply, and the lack of workplace philosophy is forcing skilled team members to leave their current company. The top-down approach to leadership, ruling with an iron fist is no longer a way to run a business and therefore change needs to be embraced.
Today individuals are looking for “collaborative leadership” at work and this style is commonly cited as a strong approach to employee management.
Great leadership is a crucial factor in retaining employees; it goes back to the famous saying that “people don’t leave jobs, they leave managers.” I raised this recently within one of my group ‘lives’ in relation to leadership programmes. Companies need to equip managers to become great leaders that individual can aspire to.
By 2020, it’s estimated that nearly half of the workforce in the UK will be comprised of millennials. Therefore, it is crucial to determine what these employees want. Ask yourself the following questions: how do I make my team millennial-friendly and do they want coaches or managers?
Millennials are looking for more than just a job with a steady salary, they want careers in which they are engaged with their company’s goals, and can develop skills and progress.
It has been proven that there are four core needs that can be offered to ensure employees remain engaged/retained. These are: values, purpose, focus and flexibility. Regardless of the tenure of the employee, there is nothing worse than being stuck at a job that isn’t motivating.
Recognition is essential to employee engagement. Different types of recognition can be identified. These can go a long way in demonstrating to employees how much their work means.
To address this, you can try setting up recognition and rewards programs that encourages daily praises and constant appreciation.
Talented workers tend to know their worth, if not treated properly, they will leave.