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An estimated 41 million employees voluntarily quit their jobs in 2019, according to the Work Institute. By the end of 2020, the firm predicted that 47 million, or roughly 1 in 3 workers, will leave their employment. According to the U. S. Bureau of Labor Statistics, businesses lose up to a trillion dollars annually due to voluntary turnover.
When you consider that cost of replacing an employee is one-half to two times the employee’s annual salary, it makes sense to work on retention. For example, for a 100-person firm with an average annual salary per employee of $50,000, turnover and replacement costs may be $660,000 to $2.6 million per year.
Employee retention is when managers know how to put employees in the right roles and give them suitable projects to keep them engaged, productive, and want to work for the company and the manager.
The benefits of employee retention are:
- Increased employee satisfaction
- Better employee morale
- Increased performance and productivity
- Improved work quality
- Increased return on your investment (ROI)
Conversely, the price of replacing an employee includes recruitment costs, training, lower productivity, and a lower level of customer satisfaction.
In their book, Love ‘Em or Lose’ Em, authors Beverly Kaye and Sharon Jordan-Evans asked over 18,000 employees why they stayed with their organizations. The result was a bestselling employee retention guide that provides valuable insight into employees’ top non-financial reasons for
staying.
In a Gallup survey, over 50 percent of exiting employees said that in the three months before they left, neither their manager nor any other leader spoke with them about their job satisfaction or future with the organization.
Most employees agree that what they want is exciting, challenging, or meaningful work. Although we all can’t have jobs as exciting as being an astronaut, here are five ways to improve your employee recruiting practices and increase the retention of employees in your business.
1. Form teams.
While in teams, workers learn more, have more variety in their work, and perform much better with follow-up tasks. Teams are great for keeping active engagements and encouraging more accountability. It is a win-win for everyone.
2. Challenge Employees with New Assignments.
New responsibilities can help your employees feel valued. Show your employees you trust them by giving them responsibilities that allow them
to grow.
3. Seek Employee Feedback.
Employees want more than an annual review. Furthermore, employees want to know about their performance, and if you provide them with continual feedback, their work will improve considerably.
4. Recognize Quality Work.
The rewards you give your employees should speak to their emotional needs and should go beyond their monetary compensation. Recognition contributes to the positive culture of the company and can be a great morale builder.
5. Provide Your Employees with Learning Opportunities.
German law provides a Bildungsurlaub, five days off annually to participate in an approved training course. Although not many countries have a law like this, the idea of enriching a job via a learning experience will keep your employees educated and interested.
Finally, communication is key to a great workplace. When your employees feel that they can come to you with ideas, questions, and concerns, this leads to a positive environment.
At Strategic Recruitment Solutions, your success is our success. Our reputation for superior client satisfaction results from a tireless commitment to exceeding our clients’ objectives. Furthermore, we are the recruiting firm for top employers in New Orleans, Baton Rouge, and the Gulf Region. Our
recruiters will partner with you in your search for highly talented legal, management and technology hires. They will lend their industry knowledge, experience, tools, and technology to enhance your recruiting strategy.
We have been matching top companies with top talent in the Gulf Region for more than a decade. Our focus is on building a long-term relationship with your company. Call us today at 888-366-6508. We can help you find the best candidate to join your legal or IT team.