When surveying our clients and followers at Culpeo HR, a resounding 77% of our audience ranked employee retention as their greatest concern and top of mind issue for 2023. Retention is something that is easily measured, simply by analyzing the number of people that maintained employment from the beginning to the end of a specific period of time. With the economy still suffering from a talent shortage, quiet quitting, and the high cost of turnover, understanding your organizations retention rate is critical. Retention is measurable…
Does your company know its retention rate?
Should you care?
Has it changed in the last 3-5 years?
We recently spoke to one of our clients about their turnover rate (approximately 75%) and they said, “it’s the nature of our industry”. Perhaps this is true, but high turnover is cause for concern. Lowering your organizations turnover percentage creates a positive work environment, bolsters comradery, and encourages employees – particularly the more talented ones – to remain for the long haul. Benefits of high retention include increased productivity, substantially reduced costs and a boost in morale. Best-in-class organizations track and analyze their retention rate and set goals year over year to improve it.
Why do employees leave?
- Burnt-out or overworked
- No career growth
- Lack of recognition/appreciation
- No flexibility
- Misaligned – disconnected in their role
- Noncompetitive pay/benefits
In a recent survey, here is what happy tenured employees shared with us:
Able to make a difference – Employees want to believe in a mission and work for a company that has a strong desire to achieve it or is making a difference.
Flexibility – Employees cherish flexibility. Covid shined a light on people’s life and made them realize that time is precious. Companies that value and trust their employees will create flexible roles to help prioritize their life and work equally.
Leadership/Mentorship – Employees want to work for inspirational leaders. 82% of American workers said they would potentially quit their job because of a bad manager*. Strong leaders are good mentors who get to know their employees holistically and support their growth within the organization.
Social Responsibility – Employees are looking for fair and equitable environments to work and live in. Companies that embrace social responsibility around climate change, diversity, equality, inclusion and advocate positive change are more likely to retain employees.
Thoughtfulness/Caring – Get to know your employees holistically, both in and out of work. Understanding their needs and their career aspirations is vital to their long-term employment.
Training & Development – Offering training and development opportunities for your employees is critical to their growth and journey at your company and will enhance their retention.
Remember, perks don’t equal culture! Keeping your good employees requires more than free coffee and a pool table. A culture of retention is when your great people recruit and support each other. By retaining your employees who rank among your top talent, you’re not just keeping your best and brightest; other employees will be motivated by seeing success and hard work rewarded and, as a result, step up their efforts. These positive employee retention efforts tend to create additional positive effects on the entire organization and the company’s culture, resulting in more employee referrals and higher customer rankings.