Below is an excerpt from Turnover Is Killing Us, a new white paper from Online Rewards.
It’s expensive to attract, train, and replace employees: the Bureau of National Affairs estimates that turnover costs U.S. businesses over $11 billion annually. The non-profit workplace improvement organization Catalyst estimates it costs between 50–60% of an employee’s annual salary to replace them, with total costs as high as 150–200%, depending on their position in the company — and it will take an average of 52 days to do it.
Gallup reports that only about 1/3 of U.S. employees are “engaged,” and that the majority of millennials are open to new job opportunities at any given time. New hires often don’t intend to stay at your company longer than two years. You will on-board them and train them, then they’ll take what they have learned elsewhere.
But it doesn’t have to be this way. Progressive company leaders are developing strategies to reduce cost and retain their key talent. Today’s prospective employees say that the culture of the company and recognition for their accomplishments outweigh compensation and benefits, provided they are on par with the industry.
You can’t change the specific duties that some jobs entail, but there are ways in which employers can make the work environment more pleasant and satisfying. Focus on these three areas and watch turnover rates drop:
- Improve the Culture of the Organization
- Improve the relationship between managers and employees
- Respect and recognize hard work
A qualified, experienced partner can help you design a performance-based employee recognition program and record the results. Effectively recognizing and rewarding employee’s contributions to your cultural and business goals will increase engagement, reduce turnover, and significantly impact your company’s bottom line!
For more on this, download the white paper, Turnover is Killing Us.