Retaining employees is often a top priority for HR managers. Companies spend a considerable amount of money on recruiting the best talent to fill their vacancies, but it comes with a hefty price tag. Refilling positions is even more expensive, as it can cost up to one-third of the employee’s salary to replace them. Businesses can influence employee retention rates by understanding the following:
- 40% of employees leave their position due to underperforming managers. Over half of employees believe their managers promoted too quickly, while 60% believe their manager needs managerial training. Those employees are much more likely to look for new employment opportunities.
- Lack of recognition triggers a job hunt in 24% of employees. Employees that feel that management doesn’t appreciate their work are more likely to interview for a new job. In contrast, employees that feel company management acknowledges and appreciates their efforts are five times more likely to stay.
- Remote working options decrease turnover by 25%. Happier, more relaxed employees are more likely to stay with their company, and having the ability to work remotely is a significant motivator. It offers them more flexibility and can reduce stressors like traffic.
- Turnover skyrockets when career advancement opportunities are scarce. Employees are rarely content to remain in their job without ever growing their skillset. Many want professional development opportunities and a clear career trajectory. If employees perceive they have no other advancement opportunities, a staggering 70% will find new employment to develop their careers.
- Money talks. Businesses can engender employee loyalty through several means. However, wellness programs, flexible scheduling, remote work, strong company culture, and competent leadership can’t compete against a better salary. Nearly half of employees will leave their current jobs for new opportunities that offer a 20% pay raise or more.
Retaining employees is essential to maintain productivity, meet deadlines, and keep recruitment costs in check. Employees considering a job change are more likely to express their dissatisfaction with their job, arrive late, or leave early. These behaviors may escalate to outright absenteeism as the employees withdraw more from their position. Contact the experts at Actec to learn more about absence management.