Leaders are to bring out the best in their staff. Becoming a leader isn’t about ego or pride. It’s a position of service and a way for managers to share their knowledge, wisdom, and talents with their staff to help them grow and develop.
For businesses to succeed, the relationship between leadership and staff is interconnected. In order to retain high performing employees, leadership needs to be aware that employee retention isn’t just about keeping employees happy, but that it’s about retaining talent which will ensure keeping the best people with you as long as possible.
An analysis of 34,000 responses to the Work Institute’s 2017 Retention Report found that 75% of the reasons for employee turnover can be prevented. The most common reason employees leave their jobs is because they are not being challenged at work. This includes feeling under-appreciated and bored with what they do every day. Managers who are receptive to employee concerns, skills and passions should consider allowing employees to change roles within the company, so they have more opportunities to learn new skills, grow professionally, and maintain high performing individuals.
Keeping employees happy and engaged in their work boosts morale, maintains a good customer experience, and reduces costs. Entry-level employees typically cost 50% of their salary to replace and it costs an employer an average of 33% of the employee’s yearly salary for their exit. This means that between advertising job postings, recruitment initiatives, screenings, interviews and hiring, hiring new employees is expensive.
When looking at bringing in new employees, having a good screening and onboarding process in place can help reduce high turnover. It is a company’s golden opportunity to demonstrate its culture and make new hires feel excited to be part of a winning team. A survey conducted by CareerBuilder and Silkroad Technology (9%) represents the number of employees who left their company because of poor onboarding experiences, and 37% percent said their manager was not part of their onboarding experience. A good onboarding experience sets the tone for a new employee’s workplace experience.
Aside from individuals feeling unchallenged at work, other most common reasons for leaving an employer are poor management practices, lack of career development opportunities, and bad culture fit. So what can employers do?
- Hire new employees based on company values. You can do this by asking questions concerning your company’s values and refrain from sugar-coating parts of the job role that might be less than desirable. It’s easy for people to get passionate about a cause, so it’s prudent for companies to embrace and follow-through on their core values.
- Offer fair and desirable benefits. These benefits can include fair and competitive compensation, health insurance, flexible working hours, etc. A Glassdoor investigation amongst recruitment and HR professionals indicated that 45% of employees who resign have done so as they were not satisfied with their salaries.
- Advocate for a healthy work-life balance. Burnout is another high reason for staff turnover. Managers should encourage their employees to strike a balance between work and family commitments. Set boundaries, encourage vacation and time off. Additionally, promote wellness initiatives to help support employee physical and mental wellbeing.
- Focus on and incentivize professional development. Employees know they need to keep developing their skills and stay up-to-date on new trends and industry advancements.