Before 2008 when the economy had fallen into a deep recession, many business owners and HR professionals opined that employees were fortunate to have been hired and ought to be grateful merely to have a job. For decades that had been the HR/business owner/ management consensus for many. What was seldom considered was how this thought process was affecting their future ability to hire and retain productive, loyal people, your front line, the strong backs and caring client/customer service employees that would maintain the success of the business.
How many of these business owners lost their businesses merely because they had the attitude that they were doing their staff and their families a favor by providing a paycheck and nothing more? Besides the fact that this stance never actually worked for anyone; with the expected improvements in the economy in 2018, it’s becoming more and more apparent that employees, from ditch diggers (if you will) to CEOs are no longer willing to accept that they must continue to live this way. Businesses are opening, and doors are opening to your employees.
There seems to be a silent demand among employees (while they search for better opportunities), for much-desired respect and the ability to engage with their employers. In other words, if you are a small to a mid-size business owner, it’s time to sit up and take notice. If you a proprietor or manager of a small to midsize business, or if you’re an HR professional in a more substantial corporation, it’s time to make the “employee engagement” shift.
The scale of gratitude is shifting. If you believe that you cannot afford to make the shift, we would like to point to the Bureau of National Affairs whose studies have discovered that annually, approximately 11 Billion dollars get lost to employee turnover.
The reasons for high employee turnover vary. In the last decade or so, gratitude came from the employee for the simple fact that they had a job and a minimal income. Statistics begin to show that employees now require better work environments, better opportunities to care properly for their families, and experience joy, balance and well-being; and of course, higher monetary rewards while they’re at work. Given the fact that full-time employees spend more time on their jobs than they do with their families, this is especially true.
Here are some glaring statistics to consider should you have any doubt that it may be time to consider changes in how you view the value of your employees:
- According to a study conducted by LifeWorks; An unbelievable 76% of today’s workers of all ages, who feel their employers do not value their work are actively seeking new employment.
- According to LinkedIn; Approximately 90% of current staff members are open to moving to companies who are offering better career opportunities and positive attitudes toward their employees.
- According to ERE Media; replacing an entry-level employee will cost a business approximately 30 to 50% of the employee’s annual income to replace them. For a mid-level employee, the replacement cost will be about 150% of their yearly salary. Further, should you find yourself in the position of replacing a high level or specialized employee, you should expect to pay 400% of their annual income to meet your company’s needs with a replacement for the dissatisfied employee who was recruited by another company, possibly one of your competitors?
- According to Gallup, 51% of workers, overall, are currently considering leaving their current positions for various reasons of dissatisfaction with their current employers from “boredom” to lack of benefits and everything in between.
There is an abundance of shocking statistics that would make business owners’ blood run cold if they could read the minds of their employees. Without a doubt, no business owner wants to focus on the possibility of losing their greatest assets, but would prefer to remain proactive in ensuring that their employees receive what they need (and even want, in some cases) to stay with their companies long term.
It’s important to be fully aware that, like anything else in business, you must invest to make money. Retaining valuable employees will be no different. Business owners will find that keeping these members in their business will be just as important as maintaining long-term repeat customers. If you adopt the position that your success in retaining valuable employees will be an essential part of your financial business portfolio, you will continue to thrive.
A Few Suggestions for Any Business That Will Help Keep Your Employees In place:
- Consider Conducting “Stay” Interviews. Instead of waiting until you’re in a position of doing an exit interview with a valued employee. Schedule midstream interviews in which you may ask inquiring questions such as:
- What attracted you to this company?
- What benefits of working here keep you with us?
- If you could name reasons as to why you would leave, what would they be?
- Are you happy with your superiors?
- Do you have suggestions for improving your relationship with them?
Form your list of questions and use their answers for improvement.
Provide internal promotion possibilities. Then encourage every employee to strive to advance within your company.
Create an Open-Door Policy so that your employees feel free to report issues without fear of repercussion; as well, allow the employees to report existing “bugs” in the company systems (in employee/management relations and otherwise); encourage them to make suggestions. Find ways to reward business saving suggestions.
At Cogent Analytics, we never stop looking for ways to improve your business and neither should you. So, check out some of our other posts for helpful business information: