"Happy employees mean happy customers and profit growth." - Vaughn Aust
It is undeniable that when an organization has exceptional employees, there is a difference and everything appears to be running smoothly. But why do some of them continue to leave the company despite the fact that you already provide the best?
When a company is attempting to achieve organizational growth, it may encounter issues such as employee turnover. Yes, achieving it opens new opportunities for a company to seize, such as the opportunity to offer a wider range of products and services to customers, branding opportunities, and economies of scale. However, if your employees, even your top performers, experience a drop in morale and productivity as a result of increased workloads, they will leave your company permanently. Employee retention involves strategic actions that are well-planned. Before starting your actions to effectively retain your talents, you might want to know first the reasons why such problems happen inside your organization. Here are the possible reasons why your talents leave/stay and some statistic on this topic.
65% of employees think they can find a better position elsewhere.
Employee retention rates hit a record low in March 2020.
By 2030, low retention will, on average, cost the US $430 billion annually.
Good retention can maximize company profits up to 4 times.
87% of HR experts consider employee retention among the highest priorities.
20% of turnover happens in the first 45 days of work at a new company.
According to the Society for Human Resource Management, employees generally stay if the company meets or exceeds their expectations; for example, if payouts and incentives are equal and reasonable, and they are treated well both inside and outside of the organization. Employees leave for a variety of reasons, including finding new jobs, returning to school, attending to their responsibilities outside of the company, or for personal reasons. Employees typically leave for the following reasons:
Employee dissatisfaction. When employees aren’t happy with their work and workplace, as the one who has the power to impose something, you should implement traditional retention strategies such as monitoring the workplace attitudes and addressing reasons behind.
Better alternatives. If you do not give your employees what they deserve, they may leave. Assume that some companies provide alternatives that are more competitive than yours, try to be competitive in terms of rewards, development opportunities, and work environment quality.
A planned change. Your employees may have a predetermined plan to quit at times. In this case, you can entice them to stay by offering increasing rewards. Creating new policies that address the needs of individual employees is one example.
A negative experience. Pay close attention to your employees, particularly when they are with their coworkers. Begin by analyzing the types and frequency of work-related issues that can cause your employees to leave their jobs, and then provide training to minimize or eliminate those incidents.
Aside from the methods mentioned above, a comprehensive employee retention program may be one of the most effective things a company can do to combat voluntary employee turnover. Remember that it is more important to keep exceptional employees than to hire replacements and start the whole process from scratch. Retaining talent necessitates lots of monitoring, assessments of difficult situations, and going above and beyond to provide them with the best. However, when done properly, it can result in lower costs due to less or no recruitment; improved morale and productivity; higher employee engagement, and many other benefits.
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Managing for Employee Retention. (n.d.). Society for Human Resource Management. Retrieved March 18, 2022, from https://www.shrm.org/resourcesandtools/tools-and-samples/toolkits/pages/managingforemployeeretention.aspx
Paulsen, E. (2021, April 2). Why Employee Retention is Important. Quantum Workplace. https://www.quantumworkplace.com/future-of-work/why-employee-retention-is-important
30 Troubling Employee Retention Statistics https://legaljobs.io/blog/employee-retention-statistics/#:~:text=In%202019%2C%20the%20national%20average%20turnover%20rate%20was%2036.4%25.&text=Employee%20retention%20statistics%20for%202018,increased%20by%20a%20staggering%2088%25.