Employee retention is a significant issue with many companies. A recent survey showed that 57% of the participating organizations indicated that this issue was a problem for them. Human resources professionals have also raised this issue. The survey revealed that 46% of these professionals stated that retention was their greatest concern. Employee engagement was the second greatest concern for 36% of the participants.
Employee retention issues cause businesses to lose a considerable amount of revenue every year. The cost associated with each failed hire is between 30% to 150% of that employee’s salary. As a result of employee turnover, various industries lose $11 billion on an annual basis.
Soon after being hired, many new employees leave their positions. For 22% of the survey participants, this was within 45 days. While each individual will have specific reasons for leaving, there are a variety of issues that may impact their decision.
In addition to experiencing an ineffective or completely absent employee on-boarding program, employees may leave soon after being hired when they notice a lack of workplace diversity. When employees have been in their positions for a while, they may come to realize that they aren’t being encouraged to do their best work as well. This, along with an absence of an employee recognition program, may denote a lack of strong leadership.
Studies show that when new hires participate in a structured on-boarding program, they are more likely to remain with a company for several years. Recent data shows that 58% of employees will still be with a company after three years when they undergo an effective on-boarding program. These types of programs are intended to assist employees with becoming acclimated to their specific position. They are also intended to provide valuable information on a company’s mission, culture, and other important aspects.
Research also demonstrates that gender and ethnically-diverse companies have fewer issues with employee retention and performance levels. Furthermore, when companies have a diverse employee base, including upper management, they tend to perform at a higher rate than their less-diverse counterparts. According to McKinsey’s research, gender-diverse companies are 15% more likely to perform higher than their less-diverse peers. Ethnically-diverse companies are 35% more likely to outperform their peers in other similar business establishments.
Employee recognition programs do make a difference. This is the case even when employees have a strong work ethic and take pride in what they accomplish. When encouraged and acknowledged for their work, this can inspire employees to continue to do outstanding jobs. Since worker happiness can make a positive impact on productivity and reduce workplace conflicts, it’s not surprising that 86% of the companies that have introduced these programs have cited an increase in their employees’ happiness.
If your company is experiencing a high employee turnover rate, there are several steps that you can take. At the top of this list is working with a job agency that can assist you with filling open positions on an interim basis. Over the course of the week, there are more three million temporary and contract employees that work for staffing companies. Given this, you have an excellent opportunity to staff your company through a job agency that provides temporary or contract workers. After this, a job agency can assist you with finding the right talent to fill your available positions on a permanent basis.
Staffing agencies can also provide consulting services. If you would like to create a more positive workplace culture, they can assist you with accomplishing this goal. Given their experience, they can consult with you to co-create an effective on-boarding program, a genuine employee-appreciation program, and a gender and ethnically-diverse employee base. In addition to reviewing a potential employee’s resume and other pertinent information, 93% of these recruiters will also examine each candidate’s social media sites.
There are, of course, other valuable services and resources that a job agency can provide for your company. If you have any additional concerns, they will be able to discuss these with you so that they can be resolved before they become a serious issue. Since you want to focus on your business success, having reliable and talented employees is essential.