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.
The pandemic forced many employees to reconsider their work situation. More time at home allowed people to view their career through a different lens, and many workers decided they’ve had enough of the stress of their job. However, a high rate of burnout isn’t the primary cause of the sudden deluge of employee turnover. Companies that are struggling to retain their workforce need to focus their efforts on the right place to reduce the number of resignations.
Don’t Bandage the Burnout
No company can afford to lose employees at a cyclic rate. However, the knee-jerk response to fix the perceived problem is often unhelpful. Offering better benefits or upgrading workspaces won’t sway the staggering 41% of workers considering leaving their job if their employers don’t address the root cause of their frustrations.
More often than not, a bad manager is the source of the problem. A recent study found that nearly two-thirds of employees considering a career change noted bad relations with their managers. Bad has multiple meanings for employees. They may feel that their managers don’t appreciate or value their work, that their primary boss is narcissistic, or that otherwise pleasant managers lack enough training to perform their job well.
How to Avoid Mass Resignations
The current job market is at direct odds with conventional beliefs about the employee-employer relationship. In the past, economic instability meant employers had most of the bargaining chips. Employees were often thankful to have a job at all and accepted situations they ordinarily wouldn’t to remain gainfully employed. In the pandemic era, employees are putting themselves first and refuse to remain in intolerable working conditions.
Avoiding resignations requires businesses to identify pain points, such as detrimental managers, and implement benefits that show the company cares about its employees. However, detecting toxic managers poses a significant challenge. Many employees would rather leave than face potential backlash for speaking out against their supervisors.
A simple way to find potential problems among the staff is to track attendance. Unhappy employees are more likely to arrive late, leave early, or miss work altogether. Businesses can use this information to identify troubling trends, such as an uptick in absences within a specific department. Contact the experts at Actec to learn more about improving employee retention with absence reporting software.