05 Apr How Important Are Employee Retention Programs?
By now, business leaders understand the importance of driving employee retention. For one thing, it’s critical for reducing turnover costs. But it turns out that employee retention is perhaps more important today than ever before. Take a look at some of the compelling data pointing to the need to implement more strategic employee retention programs:
- It’s Not Just A Priority – It’s A TOP Priority: Today, PayScale data shows that the majority of employers (63%) feel that retention is a top priority, and some reports even suggest that retaining employees is more important than retaining customers. Why? Because in order to drive innovation (and thus impact bottom-line results) employers need to build a workforce that’s both committed and engaged.
- You’re Handing High Performers Over To Your Competitors: Losing top talent is a rough blow in and of itself, but consider this fact presented by Management Study Guide: when your employees leave, it’s more likely that they’ll go work for your competitors. You can stop employees from leaving in the first place by boosting your retention program with strategies such as stay interviews.
- You’re Losing Money AND Time: Yes, it’s possible that turnover can cost your company up to 300% of the base salary of employees who have left (source: SHRM). If that statistic isn’t startling enough for you, consider the amount of time that HR spends selecting the right candidates to replace those individuals. Of course, preparing for and conducting interviews, on-boarding new hires, and training are all processes that require a significant amount of time, too. This time could be better spent on efforts to retain the employees you already have.
One unique solution to today’s employee retention problem is the stay interview, as mentioned above. If you’re unfamiliar with the concept, it’s actually quite simple: as an alternative to exit interviews, managers should take the time to periodically check in with their employees to find out why they stay with the company, and identify what they like most about their position, the organization, and so forth (as well as what they don’t like).
Of course, if your management is already too busy, this might seem like just another task to add to their list. But retention, as demonstrated above, is a bigger problem than we may realize. You can make retention a priority without overloading busy managers with a solution like HRsoft’s STAYview software. It features manager tools like stay interview templates, stay plans, and interview schedulers, thereby alleviating the burden on managers while still effectively driving retention.
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!