As the worldwide economy starts to return to a solid foundation many employers are looking to transition to a hybrid workforce. Although a better economic environment is a great sign for businesses, it could lead to increased staff turnover if employers do not respond to these new ways of working, where employees are less likely to want to return to the office full time.
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 if you don’t look after them.
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 $1.7 million for an organisation with 1,000 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 2021 and beyond, increased employee turnover could put a stop to their plans, some of which have been on hold for the past 18 months. 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 culture of appreciation 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 and behaviours such as corporate values and business objectives are a great way to get employees to boost their passion, engagement and discretionary effort through increased productivity, fewer sick days, and most important, reduced staff turnover.
By utilising employee recognition software to create digital and interactive participation, companies can encourage employees to work harder and smarter and capture “moments of truth.” 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 many employment experts, 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 a differentiator, as well as retaining employees while making you 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 retention strategy seriously?
Building a culture of appreciation with positive feedback should be a top priority for your business. The consequences for not doing so could be disasterous, so build the passion and watch your stars perform.
Tony Delaney, CEO Brownie Points Software