01 Apr The Benefits of Employee Retention Programs
Oftentimes, employers focus a great deal of effort on attracting top talent, but do less to work on retaining these high performers. When your best performers leave, it’s not just their skills, talent, and intelligence you’re losing – it’s also a great deal of revenue.
For instance, the Society for Human Resource Management estimates that turnover costs can amount to 100-300% of the base salary of the replaced employee. That’s a huge blow to a company, but the good news is that implementing employee retention programs can help you reduce turnover costs by stopping it from happening in the first place.
Turnover’s Biggest Threat: The Stay Interview
One effective practice to include in your employee retention program that can help prevent turnover is the stay interview. This informal, one-on-one meeting helps management find out why employees have chosen to stay with the company. Whether these are newer employees or decade-long veterans, it’s important to get to the bottom of what employees like most about their responsibilities and the organization as a whole – as well as what they would change. With this information, managers can make more informed business decisions to retain their key players.
What To Ask
There are a few questions managers can ask during stay interviews that will assist them in uncovering helpful insights about why employees stay, and what would make them consider leaving. Here are a few examples:
- What are you most passionate about at work?
- If you switched roles, what would you miss most about your current job?
- What’s one thing you’d change about your current role?
Click here for more sample stay interview questions.
Are Stay Interviews Effective?
In a word, yes. According to Monster.com, one company that’s implemented stay interviews has decreased turnover by 1/10th of a percent monthly. That may seem like a small fraction, but when you consider the high costs of turnover discussed above, it’s certainly a worthwhile practice. Plus, although they may be difficult to measure, stay interviews can offer long-term benefits. For instance, employees who see that their organization is taking an interest in their job satisfaction may be more likely to commit and stay engaged. Ultimately, stay interviews are a win-win for everyone, and they take little time to complete.
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!