It’s been quite some time since the US jobs market has been this strong. For employers, this is both good news and bad news.
The good news, of course, is that many companies are flush with cash and can afford to expand their base and hire the staff they need to grow and serve their customers.
The bad news is that competitors may be looking to poach your top talent to increase their workforce.
This has elevated employee retention to a top tier corporate concern. According to research by Kronos and Future Workplace, 87% of HR leaders cite employee retention as a critical or high priority issue.
When employees move on to greener pastures, they leave a talent gap to be filled, and costs to be incurred. Experts that have studied the issue of employee turnover conclude that the obvious acquisition expenses of finding and hiring a replacement, which includes launching a search process, screening and interviewing candidates, selecting the replacement, and negotiating compensation, is far from the only cost.
All of these activities take an investment of time and attention. In addition, there’s the cost of onboarding and ramping up to the productivity level of the lost employee, cultural adaptation, training, and overall immersion. It’s estimated that these costs can equate to 1.5 – 2x of annual salary.
Of course, the best way to avoid these costs and disruptions is to retain the talent you already have. That means being attuned to what’s happening inside the organization, understanding the reasons people leave, and putting an action plan in place to avoid turnover.
HR strategists have conducted significant amounts of research to try to answer the question of why people leave, and while it will vary by industry and company type, according to Achievers.com, these six points tend to account for the majority of reasons that people move on from their companies:
- They don’t get along with their boss
- Their lives take a new direction
- Their careers aren’t moving forward
- They don’t feel challenged
- The company lacks vision
- Their efforts aren’t recognized
This list represents an array of issues that tend to relate to corporate culture in one way or another. Executive leaders are increasingly looking to revitalize their work environments and demonstrate to their workforce that they are valued as employees and people.
Broad-based well-being initiatives are becoming more frequently seen as the strategic centerpieces of creating a workplace that combats the issues mentioned above and promotes employee retention. In fact, 88% of employees who have a higher sense of well-being tend to be more engaged at work, and thus, less likely to seek other opportunities. By placing a greater focus on investing in those currently working for their organizations and addressing their wants and needs, employers are setting themselves up for success in lowering their rate of turnover, saving their company money, and creating a healthier and more productive workforce.