Here in the United States, job retention has become a considerable problem throughout the workforce as a whole. There is simply no denying this fact, as now up to 57% of all organizations in this country alone have said that they now view job retention rates as a considerable problem. In addition to this, up to 46% of all professionals in Human Resources departments have noted job retention rates as the number one problem that must be dealt with, followed only by a lack of employee engagement. However, it is easy to see how the two can work hand in hand.
And the impact that poor rates of employee retention can have on just about any company can be quite considerable indeed. For one thing, it can harm the workplace environment, as hiring someone on for a permanent position and trying to get them acclimated only to have them leave shortly after can end up having a hugely negative effect on how employees relate to each other and to their superiors. The quality of work can also fall, as collaboration is likely to be less possible than ever. After all, more than one fifth of all people will leave their positions within less than 45 days of being hired, or no more than that, giving their coworkers very little time to get used to their presence. When this cycle continues to repeat itself, there’s no denying the damage it can do.
The financial toll that poor rates of employee retention takes can also be quite significant indeed. After all, employee turnover that happens rapidly can cost as much as 30% of the employee’s salary. In some cases, this cost can rise to be as high as 150% of the employee in question’s salary. In total, this means that up to $11 billion is spent on employee turnover and replacement costs over the course of just one single year here in the United States. There is certainly no doubting the fact that this can be hugely detrimental indeed to all kinds of businesses and companies operating and working here in this company.
Fortunately, there are a number of ways to combat this problem. For one, hiring temporary or contract employees through temp agencies is a good method of staffing your company while you look for the ideal permanent candidate. In fact, temp jobs can even turn into full time jobs, with the temp agency and the company working together over the period of contracted work to ensure that this candidate is the right one for the role.
And the benefits of working with a temp agency can be considerable for the companies and the employees hired out by temp services alike. For one thing, one of the benefits of working with a temp agency is that you don’t get too tied down with one company. For those who are not sure what they want to do in life yet, this can actually be one of the top benefits of working with a temp agency. It’s also one of the benefits of working with a temp agency on the other side of things as well, as companies don’t have to worry about someone being hired on as a permanent employee and then deciding the job isn’t right for them shortly after. One of the benefits of working with a temp agency is that these companies can go through sort of a vetting process with temporary employees.
Aside from the many benefits of working with a temp agency, taking steps to improve the workplace environment can also be hugely beneficial in any given working space. In fact, simply instituting some type of employee recognition program can increase overall employee happiness by quite the considerable amount. These programs have been so very successful that more than 85% of all companies that have put them into place have noted hugely positive results from them, making such employee recognition programs more than worth taking a shot at at the end of the day.
Employee retention rates might be hugely problematic here in the United States, but there are certainly ways that this problem can be rectified.