When staffing the company, employers necessarily look for stability at the core. Due to high turnover rates, the morale of the company and employers often dips, in addition to the increased cost of constantly replacing staff. Our studies have shown that workers tend to change their job every five years, on average. Moreover, the studies have shown that the cost of replacing a single staffer is nearly $30,000. The cost is extremely high, mainly because the new hire has to be brought up to speed. Companies cannot incur this cost every few years if the turnover rates remain high.
However, it also has to be kept in mind that the business model we operate these days is significantly flexible. Trends keep changing at a rapid pace; onboarding new employees and then adopting routes to upskill them, at an expedited rate, are becoming a commonplace practice. This implies that the staff has to hop from one role to the other at a very rapid pace, gaining new experiences and skills. Yet, employees should not view this as a negative. The normalization of a fast-paced work environment is something that everyone has to accept.
The New Challenge for the Leaders
The fast-paced environment of the job market has raised a new challenge for the leaders. How do they keep investing in new talents, while also ensuring that the investments made do not leak and the company has to start over again with the new hire? The rule of the thumb that one should follow, is to train employees enough so that they have the option to leave, but treat them well enough so they do not wish to. If employees feel valued in the company, they do not leave their jobs as they feel belonging within the organization.
It is the responsibility of the organization and the leaders to create a company culture that nurtures the talent in the company in a manner that also retains it, furthermore, also attracting more talent. Leaders who still live in a realm wherein employee relationship is a one-sided transaction will pay heavily. Our studies reveal that seven out of ten millennials surveyed prefer the importance of shared value over higher salaries. In a competitive world, where the companies are supposed to be agile, ready to change and adaptable, they also need employees who prioritize the same values. Thus, new hires need to be willing to learn and adapt quickly.
Increasing Staff Retention
To increase the rate of staff retention, leaders should not only focus on the customer or company image, but should also nurture the employer brand. Each company should strive to become a place where employees can grow professionally, learn new skills, feel proud of their work, and align their personal values with the vision of the company. Strategizing smartly and implementing the improved culture properly lead to not only increased retention of employees, but also attracts the best talent to your organization, since the brand motto represents nurturing.
This year the focus of a successful employer should only be on the ingredients that lead to an increased employee retention rate. Your company should clearly articulate the employee value proposition, that is what the Unique Selling Proposition of the company is, and how anyone joining the company benefits from it. Companies should have tangible markers that detail the progress and success of individuals, such as assignments, training, rewards, and promotion. The culture of the company is the most important aspect, and companies should establish it well and promote it enthusiastically. The culture should instill a sense of pride and belongingness in the employees and also look after the wellbeing of the employees.
The Bottom Line
It is an unfortunate fact that employees would always be on a quest for new roles and learning experiences, despite the best efforts of any employer brands to retain the staff. No one can begrudge any individual of trying to find the best for themselves. Both employers and new talent should benefit from investing their time into this relationship. Any company that can achieve this balance and not suffer losses if employees leave after short tenures, will become the successful enterprise in the decade that is to come. The focus of the leaders should be to develop strategies that attract and retain employees.<< back to Blog