In today’s multi-cultural, 24 x 7 workplace, business leaders and managers should have employee retention front of mind, even when business is booming.
This is the case on a global scale at the moment, as the worldwide economy starts to return to a solid foundation. Although a better economic environment is a great sign for businesses, it could lead to increased staff turnover, according to thought- leading organisations such as Bloomberg BNA.
When the economy improves, the best and most talented individuals will instinctively know that there is more money available, and the opportunities are right for the picking. As a result, your best people will be on the lookout for something better according to data from the Hay Group. They predict that global turnover rates will jump to 23.4 percent over the next five years, up from 20.6 percent.
In 2015 alone, more than 161 million workers switched jobs in the key industrialised markets, marking a 12.9 percent increase from 2014 numbers.
The cost associated with onboarding new employees is a high one as I have stated in previous blogs. A senior principal at Hay Group claims that staff turnover costs for just entry-level positions can top $17 million for an organisation with 10,000 employees. Mercer Consulting is regularly quoted that to replace an employee can cost up to 150% of their salary. Factor in the likelihood that senior or mid-level positions could go vacant and organisations could spend much more on bringing in new hires.
So, what are you doing to prevent this potentially damaging situation?
For businesses looking to expand or break into new markets in 2016 and beyond, increased employee turnover could put a stop to their plans, some of which have been in the making for years. That’s something CEOs simply do not want to do, so finding ways to keep engagement high and turnover low is important.
One key strategy can help.
Implementing a top down culture of recognition and encouraging your employees to recognise positive contribution by their peers is a great place to start. Implementing a technology platform to provide consistent and transparent recognition to broadcast and celebrate contribution while monitoring and measuring engagement levels and return on investment will boost your chance of success.
Rewarding employees and recognising contribution against specific performance criteria such as corporate values and business objectives are a great way to get employees to boost their productivity.
By utilising employee recognition software to create digital and interactive participation, companies can encourage employees to work harder and smarter. Moreover, workers may revel in the opportunity to compare performance against friends in the office, facilitating healthy competition among teams.
While physical leaderboards in the workplace may be useful, leveraging a digital solution for creating competitions is much more effective. These portals allow employees to access detailed data in an easy-to-use interface and even comment when they or their co-workers meet a certain goal. It’s a fantastic way to keep colleagues connected and engaging with each other.
Consider the benefits
According to several sources, businesses can significantly boost employee retention rates by offering well thought out recognition programs. Also, a quality recognition program is useful for attracting talent to an organisation, as well as retaining employees while making them an employer of choice.
With Gallop reporting that organisations with highly engaged employees have a 13% lower attrition rate, and Mercer reporting that highly engaged employees can generate up to 20% higher productivity and 50% higher customer satisfaction scores, can your business afford not to take employee engagement seriously?
Brownie Points are leading the way with our award winning employee engagement platform. To learn how we can help your business, call us today on 03 9909 7411 for a no obligation discussion about your business, or email the team at firstname.lastname@example.org