Remember the Covid-19 outbreak. How meaningless our huge offices, meeting rooms, company cars and expensive coffee machines were when people stayed at home. It is because companies are made up of people, not machines or buildings. People are the most valuable asset for an organisation.
This is precisely why employee retention is one of the biggest challenges businesses face.
If you’re thinking “there are thousands of people on the street looking for work anyway”, take a look at these figures:
- The percentage of workers that leave voluntarily in the service, maintenance, and manufacturing industries is 62%. (Finances Online)
- The average turnover rate is around 18%. (SHRM)
- 47% of millennials plan to leave their jobs within two years, and Gen Zers report a comparable number. ((Business Insider)
- It can cost 0.5 to 2 times employee compensation to replace an employee. (Gallup)
- Firms have lost around $223 billion over the last five years because of culture-related employee turnover. ((SHRM)
- 69% of employees who receive a good onboarding process will likely stay at a company for 3+ years. ((Octanner)
Research findings reveal that high employee turnover is a major financial detriment to businesses. Yes, millions of people on the street are looking for a job, but the cost of time, energy and money spent on posting job adverts, reaching the right person, training a beginner to work at full capacity is really high.
Moreover, the departure of the most talented employees may have damages beyond the apparent cost. The possible damage to customer relations constitutes the first item in this loss table.
So why do your talented employees leave?
The Moodivation advisory board has summarised the 7 most common examples for you.
- Those who leave as they come
One of the most important reasons why you want to stay somewhere is how you are welcomed there. The same is true for working life. No matter how successful the recruitment process is, the real first impression begins the day an employee starts work. Negative impressions such as company gossip, missing equipment, sloppy leadership, and uncertainty quickly destroy the investment made in recruitment processes.
- Those without a sense of belonging
One of the strongest reflections of company culture is the meaning employees find in their work and the value they attach to it. You cannot expect your employees to find this meaning and value on their own.
Culture sets the standards we want to see and promote at all levels of the organisation and on a daily basis. An inappropriate corporate culture runs the risk of encouraging toxic or unprofessional behaviour that will sooner or later lead your best people to seek out.
- Those who lose trust
If an employee feels that they are not respected or trusted, they will leave. Loss of trust can occur in a wide range of ways, from remuneration to communication, feedback evaluations to promotion opportunities. Employees who are micromanaged by their managers are the fastest to feel a lack of trust.
- Those who feel stuck
Do you pay attention to the number of hours employees work, or to the results and their impact? Offering your employees flexibility allows them to better balance their professional and personal responsibilities. At this point, employees who have autonomy and the opportunity to work flexibly are happier and more motivated. And the others are surely on the lookout right now!
- Those who can’t be heard
Think of a classroom where you constantly raise your hand but are never given the right to speak. How many times would you keep raising your hand? Or you spoke up and put forward an idea, but did not feel your voice being heard. How many more ideas would you come up with? Creating an environment where employees can voice their opinions, comment on business processes, be heard and appreciated for speaking up is the most important part of the future of work.
- Those who run in place
Even in the smallest companies, employees should have the opportunity to grow and develop. Being stuck in the same position for a long time creates a lack of motivation. Likewise, insufficient learning and development environment is one of the factors that cause you to lose your talented employees.
Moodivation technology provides decision makers with a versatile and multi-fractional feedback environment, allowing you to solve all these problems that we are trying to summarize before they grow. More importantly, you send the message “we are listening to you” through a technology that gives your employees a constant voice.