And high employee turnover is a costly business, too. SHRM estimates it can cost anywhere between six and nine month’s salary to properly replace a salaried employee. So, for a top plant manager or creative director earning £40,000, that’s a £20,000 to £30,000 cost to the organisation to find, recruit and train their replacement.
But beyond the expense, losing people can have a big impact on morale for the rest of the team. Losing grafters, top contributors and leaders can cause delays in projects and if it goes on for too long, will leave other good employees thinking it may be time for them to move on as well.
So what can businesses do? Here are three things to consider.
Does your business offer career progression opportunities?
One of the big reasons why top performers leave an organisation is because they’re highly attractive to other organisations, will likely have numerous offers on the table and the chance to join a new business in a higher position.
In fact, two-thirds of employees in a study from Penna say that a lack of career development opportunities at their current employer would see them looking for a new role.
Does your organisation have a purpose beyond making a profit?
With the boundaries between work and life becoming more blurred, work for younger generations including millennials and Gen Z is less about paying bills and more of a lifestyle choice.
And a large part of that shift in thinking towards work is the values of the employer, what their purpose is and how they contribute towards society.
Extensive research from Deloitte examining the behaviours and beliefs of millennials discovered that 74% said businesses have the potential to make a positive impact, from social progress to the environment, but less than 60% are doing everything they could to do so.
And with 75% of millennials saying they’d happily take a pay cut to work for a socially responsible company, can your business afford to think about its’ impact on the wider world and a single purpose which can focus the vision and goals of the entire organisation?
Do you recognise your employees?
Do your staff feel appreciated for the work they do? If not, this could be one of the key contributing factors behind a high voluntary turnover rate
Research from Office Team found that 76% of millennials would quit a job if they felt their organisation didn’t appreciate the work they put in on a regular basis.
For businesses that rely on managers to drive teams forward and recognise great work, this can be a challenge. Recognition is often the last job on the to-do list, and many daily behaviours that contribute positively to the overall success of the company can go unnoticed, and unappreciated.
A solution to this problem is implementing a peer-to-peer recognition program, empowering the people within your organisation to freely recognise each other for all the good behaviours and great work they see - as and when they happen.
Learn more about Fanclub’s recognition solutions here.