Did you know according to the most recent HR industry estimates, the average cost of a lost employee is 38 percent of their annual salary? And, since the average income in the United States is about $50,000 a year, this adds up to $19,000 per person – or higher in top-level jobs.
It’s uncommon for an employee to stay at their job for more than five years, as reported by the U.S. Bureau of Labor Statistics. This is especially true among younger workers, who today make up a majority of the nation’s workforce. The time an employee spent at a company in 2014 was three times higher – 10 years versus three years – for employees between the age of 55 and 64 than it was among those aged 25 to 34.
Regardless of their age, a good hire is a good hire. The bottom line is: You can’t afford to lose them!
Why New Hires Leave
According to the latest Gallup poll, the primary reasons people leave their jobs include:
- Lack of internal career advancement opportunities
- Dissatisfaction with their pay or benefits
- A poor fit with the role for which they were hired
- Unhappiness with their managers
Every company experiencing turnover feels significant financial impact. In addition to hard costs such as recruiting and training, soft costs include:
- Decreased productivity: Remaining team members are stretched, or worse yet, no one is available to fill the newly vacated role.
- Lost organizational wisdom: Departing employees take their expertise and experience with them.
Retention Starts on Day One
Build retention of your highest-performing employees by focusing on it right from the start – as soon as a desirable candidate steps through your door for the first time.
- Onboarding is critical. It ensures new team members have the necessary knowledge, skills and behaviors to be successful in the long run. Familiarize new hires so they know, understand and embrace your company mission, vision and values. When a company implements a successful onboarding program, they experience 54 percent higher productivity and 50 percent better retention.
- Maintain robust training programs. Once your new hires have been through onboarding and are familiar with their roles, they may still become disengaged due to a shortfall of training opportunities. Forty percent of new hires who receive poor training leave their jobs. On the other hand, well-trained hires contribute to increased productivity and profitability, as their training helps them to solve any potential performance issues relevant to their jobs
- Be the right leader. Employees who feel comfortable with their leaders are more engaged and inspired than those who have not made this key connection. The right leader is someone who can effectively motivate and coach their workforce. They seek opportunities for their employees and support them in their ongoing development.
- Communicating with your employees, empowering them and creating a culture where they can thrive are fundamental prerequisites to long-term retention. Your structured communication process should inform, emphasize and affirm the right actions and behaviors. Be constantly aware of employees’ questions and concerns. Then, proactively communicate answers and solutions. This transparency builds trust – and retention.
As you work to build retention and employee loyalty, turn to the Carolina recruitment experts at StaffMasters. We can help you hire more effectively, control costs, and continuously build your employer brand. Contact us today to learn more.