Halt the Revolving Door of Employee TurnoverOctober 12, 2022 12:02 pm
How often do employees leave or give notice at your business? Do they last a year, or two maybe? Do they job hunt constantly, looking for something better with a shorter commute and more pay? How high is employee turnover at your company?
If your answer is yes, you may be experiencing the repercussions of the pandemic in a term known as the Great Resignation.
What is the Great Resignation?
According to the World Economic Forum, “The Great Resignation, a term coined in May 2021, describes the record number of people leaving their jobs since the beginning of the pandemic. After an extended period of working from home with no commute, many people have decided their work-life balance has become more important to them.”
Research has raised some alarming statistics including “one in five workers globally planning to quit in 2022.”
The Impact of Employee Turnover
The cost of losing talented employees is high and cannot be measured in merely salary scales alone but in company morale, business reputation, and organizational growth.
Some studies claim that every time you replace a salaried worker, it costs six to nine months of that salary, on average. For an employee making just $60,000 annually, that’s up to $45,000 that you’ve lost in wasted recruiting, orientation, and more.
Tips for Employee Retention
While we have spoken about retaining a business’s best and brightest before, it warrants a review of some ideas that you may not be utilizing.
- Create opportunities for all employees regardless of current employment level.
- Establish a growth path that includes regular reviews and merit raises, as well as benefits and bonus structures to keep people moving up the ladder. No one wants to sit in a dead-end job without a chance of promotion.
- Invest in an HR program that attends to employees’ needs.
- Connect with your staff regularly and listen to their needs.
- Show appreciation when good work is done.
- Be flexible with work-life balance issues when possible.
- Be flexible with workspaces and hybrid options for working families and multigenerational care workers.
- Empower your employees to learn and grow.
- Increase compensation and benefits.
Data shows an average turnover rate of more than 10% worldwide. With that high percentage of the world’s workforce considering resignation in search of a better life, taking action now is critical to the health of your growing business in the future. Create a plan to keep your most talented and loyal employees for years to come. Visit the Enterprise Center for more advice and help during this volatile time.