Employee retention was among the most critical issues facing employers in 2015, as indicated by posts of top interest to PrideStaff Modesto clients. With the cost of turnover estimated at between 1.5 and 2 times an employee’s annual salary, plus such related costs as plummeting productivity and morale, it’s a serious threat that can hurt your company on many levels.
Reasons Your Top Employees Quit
According to one recent study, in 88 percent of voluntary job turnovers, the root cause is something other than money. The leading reasons top-performing talent tend to leave their companies include:
- Management shortfalls: Not everyone is skilled enough to manage processes or lead people. Hire or promote into management only those individuals who have the necessary attributes to influence others and can see, buy into and execute your company mission and vision.
- Lack of advancement opportunities: While 85 percent of employees say career growth is a key reward for them, only 49 percent say their companies are providing it. Provide self-assessment and career discussions, supported by coaching and training. Make sure every employee is clear about how they can move horizontally or vertically within your organization.
Increase Retention with These Tips
If your employees feel valued and excited about working at your company and are fairly compensated, they won’t want to go elsewhere. And their commitment and enthusiasm will be evident to your customers.
- Hire right to begin with. Retention begins with identifying the right combination of skillset and cultural fit in job candidates. Look beyond a person’s resume. Have they stayed with previous employers through ups and downs? This speaks to their level of loyalty, perseverance and engagement.
- Train and develop your workforce. Employee education and development should be a core focus and an integral aspect of your business strategy. Your commitment to training is accurately perceived by your workforce as an investment in their worth and is a powerful incentive for them to stay at your company.
How to Respond When an Employee is Looking for Another Job
Losing a key employee is a major headache. Unfortunately, when a person comes to you with their resignation, there’s usually not a lot you can do about it. But if you inadvertently find out that an employee is looking elsewhere, but hasn’t committed yet, you may have options.
- Is it someone you want to keep? If the employee is a top performer who you want to hold on to, reflect on why they are considering leaving. Invite them in for an honest face-to-face discussion. The conversation may be a bit awkward, but it’s vital. Let the individual know how valued they are, and that you don’t want to lose them.
- Learn from the experience. Even if your conversation fails to change the employee’s mind, you may be able to determine where you missed the mark and avoid losing other good talent in the future.
The talent management experts at PrideStaff Modesto can help you to not only attract A-level employees, but enable them to grow within your organization, versus outgrowing it. Contact us today as you develop your successful HR business plan for 2016.