Each time you have to replace an employee, you should expect to spend about 21% of that person’s salary to do so, according to the Center for American Progress, which compiled data from a 15-year period and close to a dozen research papers on the topic. Of course, that’s only the median number, and in some cases, the finding a suitable replacement requires an investment of 300% of the prior employee’s salary. Things like the actual cost of hiring, onboarding, offboarding, and the time it takes to get the new employee up to speed were accounted for in the figures. It doesn’t quite touch on the cost of decreased morale or the fact people typically move out in waves, creating immense challenges for the HR team and adding to the company’s financial burden. Obviously, losing people, especially good people, is something you want to avoid at all costs, but what are the most effective ways to curb turnover?
1) Be Flexible
Research from Boston College concludes that 76% of managers and 80% of employees believe flexible work arrangements reduce turnover. There are other benefits, such as having happier, more productive, and better-performing employees as well. Ultimately, this comes down to enabling employees to create more work/ life balance. When they can take care of things outside of work with greater ease, they’re better prepared to tackle the workday too. They also appreciate the benefit so much, they’re wary of leaving a company which offers it.
2) Be Inclusive and Diverse
Earlier, we mentioned that employees leave in waves. Have you ever wondered why this is? A great deal of it is the social structure of the workplace. For starters, if you happen to hire a group of friends or acquaintances, chances are they’ll all leave when one wants to. It also means they’re more-likely to have a small-group mentality versus a team mentality. While it sounds good, it’s important to remember that there will always be “outsiders” who need to work with them, and outsiders who feel excluded leave. By diversifying your team, you actually build a stronger one, but it’s equally important to focus on making each person feel like a welcome contributor too.
3) Be Engaging
Research from Forbes Magazine concludes about 63% of people aren’t engaged in their jobs. Not surprisingly, research from Decision Wise notes that a mere 52% of companies have a formal engagement strategy. In other words, they don’t know how to keep their employees engaged at work, where they might be lacking, or have a plan of action to remedy the situation.
Find Out Where You Stand and Create More Engaged Employees
At the HR Source, we help our clients tackle these and similar challenges every day. If you have concerns about engagement or diversity and inclusion, learn more about our D&I employee engagement services or show your employees that you care and develop a stronger strategy using our Engagement Map. Or, cut straight to the chase and book a free consult to discuss the specific needs of your organization today.