Employee Retention is something most organizations talk about, but do very little to control. Employment blogs are a buzz lately with predictions that many employees are preparing to leave their current employers once the economy shows signs of improvement. While some departures may be welcome, the bulk will not. Departures are costly. Studies indicate that it can cost an organization 30-50% of the annual salary of entry-level employees, up to 150% for middle level employees, and as much as 400% for specialized or high level employees!
What steps are you taking to mitigate the cost and improve employee Retention?
Employee Retention begins during the recruitment process. The way you represent your organization and the way you treat candidates sets the tone for their initial attitude and sense of satisfaction. Do you have a well defined Recruiting Process? Are you evaluating the skills necessary for success or do you rely solely on your gut instincts to ensure proper job and cultural fit when hiring?
The On-boarding phase is another critical juncture. This is the first real look inside the organization for an employee. Do you have a well defined Training and On-boarding process or are employees expected to find their own way?
An employees’ ongoing satisfaction with their job and their employer is directly related to their understanding of expectations and quantifiable feedback on their performance. Have you taken steps to Benchmark each role, defining the Key Accountabilities for success? Have you built a Performance Profile around the Key Accountabilities in order to measure an employees’ performance?
Employees will leave your organization at some point. Their experience during their tenure and the reasons why they leave are important. Do you outsource the Exit Interview process to a third party or does a member of your internal HR/Management Team conduct the Exit Interview? If you are handling it in house, you are NOT getting an accurate reflection of why your employees are leaving. Analyzing and understanding this data is critical.
The steps you take today to improve your organizations process and performance will help you protect and retain your most valuable asset, your people.