Think about your current job. Do you actually like being there? What perks or benefits are the biggest draw? Healthcare? Paid sick time and vacation? Likely, the perks are important, but another huge factor can make or break work culture and affect turnover: employers’ interest in their employees.
Employees respond when businesses make it a priority to respect them and show interest in their lives, and employers who go above and beyond to invest time and care into their employees very quickly discover that the extra effort is well worth it.
The Cost of Employee Turnover
A Gallup poll based on statistics from the Bureau of Labor indicates that the turnover rate in the United States in 2017 was 26.3%. That’s no small number! On top of that, Gallup reported the estimated cost to replace lost employees ranges anywhere from one half to two times the employee’s annual salary. In total, turnover costs US businesses about one trillion dollars a year before the impact on morale, institutional knowledge, and work quality moving forward.
Likely, employee turnover is the biggest hidden expense for your company, so it’s time to address it.
How To Reduce Turnover
Gallup also revealed that 52% of employees voluntarily leaving their jobs said someone within their organization could’ve done something to prevent them from leaving. Up until the moment they leave, you can keep 52% of your exiting employees if you know what they want.
That makes open conversation and communication within companies and organizations a key component of retaining employees. It also places even more value on helping employees plan their future and giving them constructive feedback. Make your employees feel like they can create the life they want for themselves in your organization and make them feel like their future is in their control based on how hard they work and they are far more likely to stay.
This is the very foundation of creating effective, loyal and long term team members.
In general, people also want to feel as though their employers are proud to have them as part of the team. So make them feel the love. Little things go a long way along this path. For example, it costs nothing for employers to check in on their employees’ well-being or to meet with them regularly to ensure that they’re satisfied with their position and their work. This interest can be the difference between retaining and losing your most valuable employees.
Questions to Ask Yourself
If you’re a manager or leader within an organization that is experiencing high rates of turnover, consider the following:
- How often are you offering your employees constructive criticism and feedback?
- What incentives do you currently offer to your employees?
- What plans do you have to offer employees an opportunity to have their voices heard within the organization?
- Are you helping them achieve their goals, and do they actually believe it?
- Would you consider your office culture to be cool? More on that in our next blog.
If you couldn’t answer even one of these questions, it may be time to consider a shift because offering employees these incentives and check-ins will benefit their productivity, foster joy, and benefit your company as a result.
It’s simple enough to show your employees that you care and even a little bit of effort can certainly go a long way. Start working on your company culture and watch your results grow way beyond your current expectations!