If employee retention isn’t something your business focuses on, it should be. Not only is it difficult to replace a departing employee, it’s also expensive. Depending on the seniority of the employee, it can cost anywhere from 30% to 400% of that employee’s salary to replace them. That can add up to hundreds of thousands of dollars a year. That’s why it’s important to be mindful of employee retention in your business. With that in mind, consider these five facts about employee retention in 2015.
1. Employees with lower engagement are more likely to leave their jobs than those who are highly engaged
It’s no secret that employee engagement is key to employee retention. In fact, OfficeVibe.com found that highly engaged employees are 87% less likely to leave a company than a disengaged employee. There are many ways to boost employee engagement, so it’s important to spend time determining what works for your business.
2. 91% of millennials expect to stay in a job less than three years
Perhaps this is part of the reason millennials get a bad rap in the workplace, but according to Forbes, hiring a millennial nearly guarantees you’ll be replacing that employee within three years. That doesn’t mean you shouldn’t hire a millennial to fill an open position, but you may want to start considering how you can adjust your business to be more attractive to millennials.
3. The majority of all turnover occurs in the first year of employment
Some studies show that up to 52% of all turnover happens that first year. That’s why it’s crucial to make new hires feel a part of the team right away. In addition to increasing overall employee engagement, ensure new hires get truly invested in your business as quickly as possible by offering incentives tied to the success of the business, not just the employee. An employee who is truly cares about the business will be far less likely to leave.
4. Job security is the main concern of job seekers
If retention is an issue in your business, it might be time to consider how secure your employees feel in their jobs. Companies with frequent lay-offs tend to struggle with retaining employees as well. Employees are more likely to jump ship if they don’t feel safe in their current position. According to Fortune magazine, a poll conducted by Working Mother found that 66 percent of respondents listed job security as a top priority in choosing a place to work.
5. Money isn’t the key to retention
While compensation can be a factor in an employee’s decision to leave, it is rarely the only reason. There are many ways to keep employees happy without giving across the board raises. In addition to feeling secure at a job, employees want to feel like they are growing in their position. The best companies keep their top employees by investing in them, offering professional development, continuing education, and ample vacation time.
Employee retention may always be a struggle for your business, but there are many easy and effective ways to improve it. Whether your main concern is the rise of millennials in the workplace or the potential cost of providing professional development for your employees, you can’t afford to not investigate employee retention strategies.
Are you interested in a solution to reduce employee turnover and increase engagement in 2016? Get in touch with us to find out more about Beekeeper – mobile communication tool for teams, and we’ll be more than happy to show you how you can use it to reach and engage every employee.