So your company’s CSR strategy is in place. You’ve got stake-holders on-board and everyone is super excited about formalizing something that has been a part of your company’s culture.
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Every couple of years, business trends tend to change, and the majority of them are caused by the changes that technology has brought. Many businesses now give their best to create powerful communities around their brand, to ensure high customer retention.
Training, company culture, employee retention, employee recognition; these are just some of the many terms that are swamping around the concept of employee engagement. Many sources out there will try to sell you information and tell you that employee engagement is a mysterious space that requires a lot of knowledge and attention. I’m not here to feed you a shameless plug. I’m here to tell you that a significant portion of the information out there is complete garbage and that you can improve your employee retention strategies with little to no investment(s). The best part is, you can start implementing these tips today.
It’s 2017, which means if you don’t have an employee retention plan you may be headed down a long and challenging road of high turnover and unfulfilled employees. By 2020 it is expected that 60% of the workforce will consist of Millennials. Due to the Millennials’ values and beliefs, traditional workplace environments will have a hard time retaining, and even recruiting young talent. Millennials naturally want to feel valued and connected to a company that has a clear vision to make a positive impact. Millennials are often considered as a lazy generation to the ones before it. However, what sets Millennials apart, from any other generation, is that they are the age of collaboration. Millennials love to collaborate with one another on meaningful work. Work that gives them the freedom to choose the best direction for the company they work for. People want to feel that they are apart of a team, not just a regular employee.
Challenges with a Pet Policy at Work
There’s a saying that says you can’t please everyone. This goes for pretty much any individual, especially employers. As an employer, one of the biggest challenges you can face is making your employees feel as if they bring value in a workplace environment. After all, what’s the key to improving employee retention? Making employees love where they work. By 2020, approximately 60% of the workforce will consist of Millennials. As an employer, this can either be a good thing or bad thing. For those that stick with traditional workplace values, turnover rates may become a problem. But, what about those companies that decide to evolve as the workplace evolves? Well, they’re in for a treat. Companies that truly understand the values that Millennial’s possess will notice that retaining employees will become easier than ever.
Obstructions in Reducing Turnover
You’ve heard the positives and the negatives of turnover rates. You’ve probably even been curious on how it can affect your business. Most of the time businesses don’t speak about the true costs of employee turnover. In fact, the cost is largely hidden. The expenses don’t show in your loss and profit statements, and they are virtually hidden when it comes to company budgets. So how is this mysterious entity actually causing you harm?
The Cost Employee Turnover Rates
Technology’s influence in managerial, financial, and operational practices becomes more evident day by day. The impact of losing top Information Technology (IT) talent can easily translate into an added cost ranging from 50% to 150% of that person’s annual salary. Human resources have the uphill task of reducing their employee turnover rates for in-demand professionals covering programming, analysis, tech-support, technicians, admins, and project management roles.
Financial Factors and Beyond
Replacing employees is expensive. Forbes reported the replacement cost of millennial employees as $15,000 to $25,000. However, the average cost of employee turnover is not felt like other costs. No one sends your company a bill for $20,000 when an employee terminates. This cost accrues through recruitment, training, and lost productivity. There are additional factors beyond the financial that make up the average cost of employee turnover which we will discuss today.
Calculating Turnover Rate and the Millennial Paradigm
As Millennials begin to flood the workforce, companies can no longer rely on traditional business practices. Millennials are a group of individuals that are foreign to a traditional work environment. They tend to enjoy their work, rather than slaving away for a salary. Because of this mentality, it’s important for new companies, and existing companies, to begin implementing good business practices. Failure to do so can result in current employees leaving their jobs, or even potential employees from making a decision. Turnover rates can be a tricky subject. Not because the concept is hard to understand, but because they’re many different factors when it comes to calculating it. It's important to understand how to calculate employee turnover.
Variables to quantify employee turnover costs
Numerous industries and verticals face massive challenges when it comes to retaining their top talent, and reducing employee turnover costs of their organization. Although, having a certain level of turnover is healthy in terms of gaining new talent insight, and maintaining an innovative culture. Note that a the typical Human Resource manager is far from quantifying the average employee turnover rate.