Employee Retention Starts at the Top
By: David Webb, SelecSource CEO
Employee retention is a priority for nearly every organization. The loyalty of employees is hard to earn but ultimately the key to business success… and it all starts with the employer.
According to data from the U.S. Bureau of Labor Statistics, about 3 million Americans quit their job each month. This includes voluntary departure, not employees that leave due to layoffs or termination. So how do we, as business owners and employers, stop this turnover and keep our inspired talent engaged?
SelecSource believes its critical to always be engaged with our staff members. Our job is to know how they feel about the organization, their team, and their leadership. We believe that every story matters. The talent with whom we engage and place every day also have a unique story to tell and we are fortunate enough to continue writing it. We strive to make our relationships more personal.
Based on the research, here are a few key reasons employees stay with companies long term:
- Employee engagement
According to Forbes research, highly engaged employees are 87% less likely to leave an employer. This makes perfect sense. If you keep your talent inspired and engaged, they are more likely to invest in your vision and work with a purpose. A passionate employee is contagious to both your customers and the other employees around them. Competitive compensation and authentic appreciation are critical factors in retention. I have always maintained that folks leave organizations due to the absence of one or both.
How do you keep your employees engaged beyond personal connection? Technology and tools make up the ecosystem that fosters critical efficiencies. It is the lifeblood of the youngest generations in the workforce. Of Gen Z and Millennial employees, 16% say that they have quit their jobs due to a lack of adequate technology. By 2025, Millennials will make up 75% of the global workforce – so now is the time to speak their language. They believe in personal development, flexibility, sensitivity, while investing in new technologies to help them achieve their goals.
From the start of their career, employees want to feel as though you are invested in them and their futures. The first step to retaining employees is making sure they have access to the tools, knowledge, and information they need to succeed in their specific role. According to a 2020 LinkedIn study, companies that rated highly on employee training saw 53% lower attrition. Training should not end after an employee is comfortable in their role. They welcome continued opportunities for growth and training throughout their tenure.
- Work-life balance
One of the many things 2020 taught us is the importance of a work-life balance. A study by Kronos found that 95% of Human Resource leaders admit that employee burnout destroys their workforce retention, therefore understanding is essential. We all desire to lead a healthy lifestyle, yet work is one of the leading causes of stress. Stress at work impacts people mentally, emotionally, and physically. Employers should not only ensure their employees are working a healthy and manageable number of hours each week, but also encourage them to set their own personal and professional goals.
- Opportunity to be heard
Give your employees a voice! Prioritize employee surveys and develop action plans based on feedback. This is a mutually beneficial practice – essentially increasing the engagement of your employees and improving their everyday performance. According to Forbes, employees that feel heard are almost 5 times more likely to perform at higher levels. Collecting honest feedback helps employers keep their finger on the pulse of morale within the organization.
Bottom line: invest in your people and they will invest in you. It is the employer’s responsibility to create a thriving environment with a prosperous path for growth.