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 2022 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.
Employee engagement is critical for retention. Employees who feel passionate and engaged are far less likely to leave.
66% of employees would be more passionate and engaged at work if their managers improved company culture, while 52% would be more engaged if the company improved its diversity and inclusion.
20% of employees feel that their managers do not recognise their contribution, and positive feedback is poor. Productivity and customer experience improve when recognition and positive feedback is given in a timely and appropriate manner.
Building a culture of appreciation that allows employees to give real time positive feedback that can be viewed by everyone in the organisation is a powerful motivator in the fight to maintain and improve corporate culture, productivity, and wellness across the entire workforce.
Everyone wants to feel appreciated, valued, and respected. If you don’t recognise your employee’s contribution with positive feedback your competitors will cherry pick your top talent, making your challenge even greater.
Clients do not come first. Employees come first. If you look after your employees they will look after your clients.
If you don’t look after your employees, your competitor will