Employees hold the core of any industry. They provide the manpower to push a business to its success or failure. A company is only as good as the loyalty of its employees. This is why it’s imperative for business leaders to create an environment where employees can enjoy their working lives, thus preventing a damaging rate of employee turnovers.
According to a study by the Bureau of Labor Statistics, a staggering 91 percent of Millenials intend to do the same job at a specific company for only three years. This means companies who are looking to hire new employees from the younger generation can expect to spend more hiring costs due to ad placements.
So, what exactly drives an employee to leave?
Employees, especially those who have stayed with a company for years, expect their hard work to be properly compensated. Once they feel that their contributions to the company are underappreciated, they are driven to look for other companies with a better salary package. This is bad news for employers because they can potentially lose much of their top-performing employees, which, at this point, should already be treated as company assets. And like any important asset, they must be taken care of. Think about it, if you allot a budget for technological advances or even maintenance, because it is part of asset management, shouldn’t you allot more time and effort and even budget, that accounts for half of the company’s total overhead expenses – people.
Another downside of turnovers is that it tends to kill the morale of the remaining employees. This will damage productivity because at the back of their minds, they will start questioning their future in the company or even suspect that something is wrong with the management. Worse, they might even follow suit. Turnovers will persist if employers refuse to change their attitude in handling their employees.
How then does a company promote employee retention?
The primary thing to do is to review salary packages and benefits. Make sure that yours follow the current market standard and determine which among your employees are up for promotion. Provide rewards accordingly.
Next, give them a say in the company. Encourage them to impart opinions and give feedbacks in return. This will allow them to feel they indeed play a significant role in the organization and this will push them to strive harder in the work that they do.
Another reason why an employee leaves is if he doesn’t find fulfillment in his professional career. No employee would want to stagnate and if given the chance, he or she would start looking at other companies to see if these offer faster career advancement. According to an article by Limeade, a technology company that builds high-performing workforces for Fortune 1000 companies, you can give employees stretch assignments that force them outside their comfort zones and learn more about other functions. This way, they can enhance their skill set while performing their own duties in the company.
Rewards for hiring referrals offer a win-win situation for both employees and employers. Employers can also benefit from this since the current pool of workers would know exactly the kind of candidates the company needs.
HR managers and business owners admit that employee retention is one of the biggest challenges for the company. However, you have to remember that management and the hiring process are factors that both contribute turnovers. Hopefully, with the tips mentioned above, you’ll be able to keep employees on board and productive for years to come.