Experts predict a wave of employee turnover as the economy recovers from the recession.
Here are five steps you can take now to prevent your best employees from riding that wave out your door.
2. Congratulations, You Survived the Recession! During the “Great Recession” voluntary employee turnover stayed low as America weathered the economic storm. Employees who survived layoffs and news of record levels of unemployment were thankful to have any job.
3. Now Here Comes the Revolving Door According to a recent survey, job satisfaction levels among American workers is at the lowest level in twenty years. 22 percent of the survey respondents do not expect to be in their current job in a year. Source: The Conference Board, an independent business research company
4. The Cost of Employee Turnover Between 25 percent and 250 percent of the annual salary per exiting employee. Entry-level, unskilled positions are at the lower end of the cost range, while executive, managerial and sales positions are at the higher end. According to Studies by American Management Association
5. Due to the staggering costs of employee turnover, one of the greatest threats facing employers is losing their best and brightest employees.
6. Steps to Prevent Turnover Start with a solid onboarding and orientation program. The highest level of turnover occurs during the first 90 days on the job. The purpose of onboarding is to assimilate the new person into your organization, so make the first few days a positive, memorable experience.
7. Steps to Prevent Turnover Develop a good relationship with your employees. A recent study conducted by Indiana University found that a bad boss is the main reason people quit jobs. A good manager must be a good communicator, clearly communicating expectations and providing encouragement for a job well done. Good bosses acknowledge the work of others and genuinely care about their employees.
8. Steps to Prevent Turnover Build a flexible workplace. Workplace flexibility is no longer a perk; it’s a business imperative, according to the White House. Today’s employees want to decide when and where they work in order to balance their personal and professional lives. This flexibility benefits business by increasing productivity, lowering turnover and reducing absenteeism.
9. Steps to Prevent Turnover Provide career development. One of the primary reasons employees leave an organization is lack of career growth. One study found that more than 40 percent of the respondents would consider leaving their present employer for another job with the same benefits if that job provided better career development and greater challenges.
10. Steps to Prevent Turnover Pay competitive wages. People stay in jobs because they want to contribute to something bigger than themselves, because they love what they do, or because their job gives them a sense of purpose. But, the primary reason anyone works is for money; bills have to be paid, children have to be fed. If you’re not paying your employees at the same level as your competitors, they will know, and their job satisfaction will erode.
