Staff retention is no joke this year, or ever. According to Gartner, 91% of HR leaders are increasingly concerned about employee turnover. This percentage is no surprise, considering that 38% of employees are looking to change their jobs within the next 12 months (September 2021).
But where are businesses going wrong, and what strategies can they implement to support and sustain staff retention?
Why Businesses Should Care
Financial Costs
Based on the average UK salary, the average cost of employee turnover is around £11,000 per person. A massive cost for businesses that can be avoided.
Unique Skills
However, it’s not just about the financial cost. When you lose an employee, you lose a vital member of your team and their unique skill set who helps create workplace cultures.
Company Culture
Following on, your people are paramount to your company's success and culture. Staff retention helps to solidify and cultivate those cultures you choose to pursue.
Where Businesses Go Wrong
Undervaluing Employees
When your people feel undervalued, they also feel overworked, leading to decreased productivity and engagement. Therefore, your people are more likely to search for employment elsewhere. Given that there are fewer unemployed people for each job vacancy than before the pandemic struck, your people now have higher chances of finding a new job.
Lack of Progression
If employees cannot progress, staff retention is affected drastically. Many individuals want and even need progression in their careers, not just for salary but to succeed in life goals. With little progression, your people's confidence, initiative and enthusiasm will decrease.
Without proper perks at work, your people will feel undervalued and unappreciated. 51% of UK employees said a simple thank you would make them feel more engaged, and by now, we know engagement is the key to staff retention. It’s not just about saying thank you for your hard work, though. Individuals want more than just a good salary and recognition. They want valuable perks at work such as Savings Clubs and more.
How to Help Staff Retention
Hire the Right People
Disengaged employees will have catastrophic effects on your staff retention and yearly costs. Not only will you need to retrain once they are gone, but they may even cause other team members to become disengaged.
That’s why it’s essential to hire the right people from the start. Consequently, you’re hiring someone with the right skills, goals and experience to meet the role.
Improve Your Employee Reward Scheme
If you don’t already have an employee reward scheme, it’s high time you implement one. Roughly half of UK employees said that they would leave a job that didn’t praise or thank them enough for their hard work. If that wasn’t enough, according to Psychometrics, companies that offer rewards and recognition have a 31% lower employee turnover.
Act on Employee Exit Surveys
Companies cannot avoid turnover altogether. Individuals will continue to leave jobs for a multitude of reasons. However, you can use exit interviews and surveys to help staff retention. These interviews will give you vital insights into why people are leaving and help you stop the next ones.
To conclude, staff retention is inevitable. However, you can reduce turnover hugely with the right strategies in place. In turn, your company will increase its culture, employee engagement and even yearly costs.
If you enjoyed this article and want to learn more about how you can introduce an employee reward scheme this year, visit https://www.eachperson.com/ or contact us today at info@eachperson.com
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Author: Jasmine Turton, Marketing Executive, Each Person