Recent studies have found that American’s hate their jobs more than ever, and employee retention has become the top objective of employers. Why?
The workforce has changed. Companies have changed. Traditional retention strategies no longer work. Do your employees value an increase in salary as much as they would value learning new skills? Or building new relationships? Or more free time? Do they value new projects and more feedback from management or more autonomy?
94% of employee turnover is preventable and today, organizations are devoting tremendous thought, resources, and effort into figuring out how to retain the best and brightest people in their company. If you are not doing the same, you risk losing the top-performing employees that make your company great.
So you may be asking, “Where do we start?”
First, recognize that turnover is a symptom - not a problem. No company has a turnover problem. Turnover (like absenteeism and conflict) is the manifestation of deeper issues that have not been resolved. Maybe it is low morale, no career path, lack of recognition, poor employee-manager relationship, or literally 1 of 62 other employee-firm breakdowns we have identified. Solutions are unique to every organizational culture. "One-size-fits-all" answers do not work in complex workplace environments.
The greatest impact on the cost of doing business in the past 10 years has been employee turnover. In fact, employee turnover can cost companies up to 40% of their annual profit. So – how much is your turnover costing you?
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Chason Hecht is the President of Retensa, a company specializing in employee retention and strategic planning. Retensa's clients are companies looking to develop, motivate, and retain their best employees. Retensa uses web-based organizational assessment tools to reduce turnover, improve employee morale, and build HR Metrics.