Despite economic changes, the issue of employee retention is here to stay. The labor shortage that plagued employers at the height of the economic boom has not vanished. It may be off the radar now, but it is returning strong as ever.
Successful organizations realize employee retention is integral to sustaining their leadership and growth in the marketplace. Most businesses focus on employee retention when employee turnover starts to increase. However, good organizations make employee retention a core element of their talent management and organizational development strategy. Those that fail to make employee retention a priority are at risk of losing their top talented people to the competition.
For the past two decades, we have helped executives design employee retention plans that provide a comprehensive road map for not only attracting and keeping talented employees, but for motivating and engaging them to achieve a higher level of performance.
Employee Engagement and Job Satisfaction
Just because employees are not leaving does not necessarily mean that they are engaged. Studies tell us over 45% of today’s workers are disengaged, costing their employers millions of dollars in lost productivity. Our services provide you with the knowledge, skills, tools, and processes to help you design a unified talent management strategy that will lead to low employee turnover and high employee retention. You will learn the driving forces that drive job satisfaction and employee engagement leading to high employee retention. Our employee retention and talent management strategies will help you:
Factors that Drive Employee Turnover and Job Satisfaction
Employees quit for many reasons. Some leave for better paying jobs elsewhere. Others depart because they do not fit the culture. Many more exit because their managers and supervisors are not properly trained. In general, there are five important areas that motivate people to leave their jobs.
Poor match between the person and the job
Poor fit with the organizational climate and culture
Poor alignment between pay and performance
Poor connections between the individual, their coworkers, and the supervisor
Poor opportunities for growth and advancement
These five P’s can be addressed successfully. Employee retention begins by paying attention to what causes low job satisfaction as well as what attracts, retains, and motivates your workforce. Here are several reasons talent management and employee retention strategies fail in many organizations.
- Not connected to the vision, mission, and the organizational values
- Top leadership not involved
- Not part of the organizational management strategy
- Not tied to the bottom line
- No clear goals
- No one held accountable
- Delegated to the HR department
Cost of Employee Turnover
The cost of attracting, recruiting, hiring, training, and getting new people up to speed is tremendously more costly as well as more wasteful than most realize. Productivity is directly tied to employee retention. Studies from the Gallup organization show employees who have an above average attitude toward their work will generate 38 percent higher customer satisfaction scores, 22 percent higher productivity, and 27 percent higher profits for their companies.