Sourcing, interviewing and onboarding talent can cost your business big — and that's a problem, considering the current rise in employee quit rates. The number of workers choosing to leave their organizations is the highest it's been in nearly 20 years — about as long as SHRM has been tracking the data. So if you're having trouble holding on to talent, you're not alone.
Read on to learn more about all the ways low retention can hurt your business, and what steps you can take to start correcting it.
skip to the 3 ways to improve your retention rate
the costs of low retention
Your business can't fire on all cylinders if it's embroiled in a constant state of interviewing, hiring and training. Low retention rates can mean rerouting critical resources to hiring replacements, distracting your organization from its overall mission.
Then, with so many employees leaving, existing workers must step in to take on their responsibilities. But the longer a position goes unfilled, the greater the chances are that your existing employees will burn out from the extra work and leave as well.
That means even more vacancies than the ones you started out with — and that can get expensive fast. The average cost of replacing an employee is 21 percent of their annual salary. No matter how much revenue you're generating, that's not an area you want to leave unaddressed for long.
3 ways to raise retention
If your retention levels aren’t where you want them to be, follow these steps to start correcting the issue.
1. improve work-life balance
With burnout from work now recognized as an official occupational phenomenon by the World Health Organization, people are defecting to employers who share their commitment to finding a better work-life balance. Here’s what you can do:
- Sixty-three percent of respondents to a Randstad survey said they wouldn't work at a place that offered fewer than 15 paid vacation days a year.
Provide agile working arrangements.Over a third of employees said they’re considering leaving their current jobs because they don't have the option to work remotely.
2. create a positive work environment
Working in a happy environment is a highly prized requirement for many employees today. Here are some ways to foster a positive atmosphere:
Promote team building over competition.Fifty-eight percent of employees said they have, or would consider, leaving their jobs over negative office politics.
Manage your employer brand image.Eighty-six percent of employees said they would not apply for, or continue to work for a company that has a bad reputation.
Consider team chemistry when selecting managers.Sixty percent of employees have left jobs in the past, or are considering leaving one, when they don’t like their supervisor.
3. offer competitive compensation and benefits
Competition for top talent is fiercer than ever before, so many employers are revamping the benefits and perks they offer in an effort to reel in more qualified candidates. Organizations that haven't been able to keep up are finding it harder to hang on to their top performers.
Keep your pay competitive.. Eighty-two percent of employees said they expect pay raises every year in order for them to stay.
Revamp your benefits package.Fifty-five percent of employees have left jobs in the past because they received better benefits elsewhere.
Align your offerings with current worker expectations. In addition to better work-life balance, employees most wanted perks that enhance their quality of life.
partner with a staffing firm
Identifying all the factors contributing to a retention problem can be difficult — there are a lot of aspects you need to consider before finding the right solutions for your workplace. If that’s the case, then partnering with a staffing firm can help.
Staffing firms will send you candidates that fit your workplace culture, so there’s less risk of disengagement.
Recruiters can give you the latest salary data and trends in worker expectations so you know what to provide.
A staffing strategist can design tailored employee retention strategies for your business to help you in the future.
start raising retention
Addressing major problem areas like work-life balance, workplace culture and compensation and benefits can start putting you on the right track to improving retention. Or if you’re looking for a staffing partner for extra assistance, contact us to start working together today.