Job culture has been changing rapidly within the past few decades – the rise of the “gig economy” and a sharp increase in job dissatisfaction has caused a rapid jump in employee turnover in many industries. Nowadays, roughly 50% of companies are reporting difficulties with employee retention, and 70% have issues replacing employees once they leave.
Why Do You Need Employee Retention?
For some companies, this phenomenon might not feel like a big deal. But failing to retain employees can cost you valuable time and money; some studies estimate that replacing an employee costs double what their salary was. Additionally, companies that excel in retaining employees report that their employees are more productive, and their work is of a higher quality.
Why Employees Leave Jobs
Many employers believe that salary is the only factor in employee retention; however, most employees who quit their jobs rarely do so for financial reasons. In reality, the reasons for employees leaving include:
- Incompatible talent or interests
- Insufficient support or feedback
- Lack of available growth opportunities
- Inadequate resolution of complaints or issues
Strategies for Employee Retention
One of the most effective strategies for boosting employee retention is to improve your hiring process. If you continuously hire candidates who aren’t compatible with the company culture or values, then the chances that those employees will leave becomes exponentially higher. Don’t be afraid to ask pointed questions to determine if a candidate is right for you, and don’t be afraid to pass on talent that isn’t a cultural fit for the company.
Another strategy applies to the employees that you already have – you need to invest in their education and advancement, or their positions will quickly start to look like a dead end. Studies show that 80% of employees consider high skills training highly beneficial, and it appears to be a huge factor in employee satisfaction and retention. Investing in your employees’ skills and career paths is also a good way to ensure that they feel valued in the company, which is another huge factor in employee retention.