Did you know that on average, you’ll spend:
$3,500 per new hire in recruiting costs (advertising, HR’s time/labor, etc.)
$702 (average cost) to train a new employee
6 months to break-even point on a new employee’s productivity level
With numbers like these staring us in the face, it behooves any company to make sure their new employee sticks around long enough to deliver a return on their investment. And that means making retention a top priority.
Want even more reasons to work on your employee retention?
- Contented employees are more productive, as many studies have shown
- Frequent introduction of newbies stresses the whole team, increasing job dissatisfaction
- It costs more to replace an employee than to improve their job satisfaction
Why They Leave — It’s Not Always About the Money
Surveys of workers who quit their job reveal that salary is not even among the top five reasons. More often, the decision to leave is motivated by unhappiness with conditions such as an unpleasant work environment, unfair management practices or no opportunity for advancement.
As you can see, maintaining employee happiness can be done — and even done better — without just throwing money at the problem. At Integrity Staffing Solutions, this tenet is the foundation of our corporate policies. We constantly analyze what our associates need to be happy and successful in their jobs, then make sure they get it.
Here are some of our top strategies.
Get Input — and Take It Seriously
Until you know what employees actually think, you’ll be flying blind. Integrity routinely sends out surveys and holds town hall meetings with company leadership where everyone is free to ask questions and share opinions. We then analyze the results and make (or adjust) our plan to implement necessary changes.
Give honest consideration to complaints. Even if they seem far-fetched on the surface, they may indicate a real issue. Especially in the case of reported failures to follow company policy against racial/gender discrimination or sexual harassment, a prompt investigation could avoid future legal action.
Update HR Policies
There may be some dinosaurs on the books which are hurting you more than you know. For example:
- Maximum annual raise that’s far below what employees could get by taking a job elsewhere (and what you would have to pay their replacement)
- Lack of flexibility for employees who need work/life balance
- Lack of a safe method to report bullying or unfair treatment
You might be surprised at how often managers point out mistakes compared to how seldom they praise a job well done. Positive words can make a big difference in boosting an employee’s morale and further efforts at peak performance.
Achievement can also be motivated by small rewards such as gift certificates, cash bonuses or other benefits.
Polish Up Your Corporate Culture
Your company already has a working style — casual, regimented, or somewhere in between. But how well does that culture define success and support efforts to meet or exceed the standards you set? Inspire employees with common goals, help build team relationships, and encourage mentorship between senior and new employees.
At Integrity, our culture-building programs include:
- “Cubes” — company-wide peer thanks/praise publication
- “Bigger Boots” core value — learning new skills for promotion from within
Evaluate Performance Fairly
Personalities can get in the way of objective evaluation. Implement a reliable assessment tool that assures employees are being reviewed in an unbiased and non-discriminatory manner.