21 Dec Employee Retention Statistics: Why Are Your Best Employees Leaving?
Employee Retention is a scary concept, but it is essential. The approach is very similar to that of retaining a business client. It takes more money and time to convert a fresh lead into a buyer than it takes to convince an existing customer to upgrade. In the HR setting, both productivity loss and recruitment costs peg the expense of replacing an employee at a staggering 1.5 to 2 times the proposed annual salary for the position, according to Josh Bersin.
If there is so much at stake where retention is concerned, why do companies wait until an employee is already disengaged to conduct an ‘Exit’ interview and discover the reasons that have driven them to leave? The strategy is quite ineffective and the rising number of voluntary quits stand witness to this fact.
Employee Retention Statistics That Speak Volumes
A recent CareerBuilder Survey of 3,056 employees from various sectors and industries revealed that 30% of workers regularly search for better opportunities and 23% of Millennials already have offers to start with new companies by the end of the year.
The survey further stressed the fact that compensation is not the ultimate factor deciding who stays and who leaves. It found that 65% of workers crave job stability, 57% want better office locations, 55% would like heftier pay packages, 46% want a good work culture (that includes a transparent, easy relationship with the line manager) and 39% have hopes of rising up the corporate ladder.
Based on the data, companies must take a holistic and comprehensive approach to employee retention. Line managers need to be provided with constructive feedback and measurable results so they can improve employee retention.
A revolutionary new practice known as a ‘Stay Interview’ has quickly been emerging as a top retention tool. During this focused one-on-one discussion between an employee and his/her manager, stay interviews identify concrete steps that the company can take to make the worker’s experience more rewarding. They also build trust between a line manager and his team of employees.
During the course of a stay interview, a ‘Stay Plan’ is developed by the supervisor. These stay plans are growth, improvement and development blueprints that are tailored for individual employees.
Great talent makes a great brand. In order to stay a step ahead of your competition, it is vital to evaluate how your managers can keep their best employees without playing an expensive guessing game.
HRsoft is a leading provider of strategic talent management software that improves manager effectiveness and business results. Our full suite of cloud-based HR software solutions includes applicant tracking software, compensation planning software, total rewards software, stay interview software, performance management software, and content management software. To learn more about our Stay Interview Software, STAYview, click the button below!