If, as many recent reports indicate, employee turnover is set to rise to 50% in 2022, this could be a disaster for many businesses, as the cost of replacing staff can be as much as 150% of salary.
When you add those who are undecided about whether they will look for a new job the figures quoted grow to a staggering 65%!
Recruiting and retaining top talent is therefore critical for businesses to survive.
While compensation and benefits remain among the top reasons for moving on, work life balance is the second highest motivator for looking to move on.
Work life balance (including culture and appreciation) is the number one reason for employees staying in their role, so this should be a high priority for employers, to improve employee retention and attract top talent.
While compensation matters, assuming that the employer is paying a competitive wage, it is not the main factor when it comes to retention. Work life balance and Recognition both rate higher than compensation for retaining top talent. Salaries need to be competitive, but other factors matter more for those looking to stay with their current employer.
With many people now working from home, or operating in a hybrid environment, employers could be forgiven for assuming that work life balance has improved. Unfortunately, this is not the case, as reports highlight that 51% of people currently working from home are worried that their manager doubts their productivity, and does not trust them, and more than 40% of employees are working longer hours to try to negate this concern.
This highlights the importance of implementing a Culture of Appreciation, where positive feedback based on pre-determined behaviours and trust can be given and received in a timely manner, publicised to all employees, while embracing the corporate values and vision is necessary to ignite the passion and improve employee engagement.
If you are not looking after your employees brace yourself for an expensive 2022 with you looking for and recruiting staff in a market that is likely to be short of many skills and experiences.
The time to act is now. Build your Culture of Appreciation to protect your investment in your people, or your competitors will reap the rewards.