Retaining your employees is as important as recruiting your employees. Employees leaving an organization are natural. There are only a handful of employees today who stay in one organization for more than 14-15 years. But when many of your employees are leaving your organization within a span of 1-3 years, surely it’s a sign of alarm.
The rate of employee turnover has increased in this decade. Thanks to economic volatility today employees are suffering from the phobia of losing their jobs more than before. So they prefer to jump ship for the slightest hike in salary.
This is not the only factor for jumping ships. Millennial employees love better work, love hard parties. So it’s a trend seen in many jobs today that after gaining niche expertise people change to other companies. Constant Poaching and Head-hunting has make things worse.
Studies have shown that cost related to directly replacing an employee can be as high as 50–60% of the employee’s annual salary, but the total cost of turnover can reach as high as 90–200% of the employee’s annual salary.
(Cascio, W.F. 2006. Managing Human Resources: Productivity, Quality of Work Life, Profits (7th ed.). Burr Ridge, IL: Irwin/McGraw-Hill. Mitchell, T.R., Holtom, B.C., & Lee, T.W. 2001. How to keep your best employees)
Retaining your employees is important in running your business. When you hire the best people – they expect the best from you in terms of employee benefits. Taking the time to listen to employees and making them feel involved will create loyalty, in turn reducing turnover allowing for growth.
“To win in the marketplace you must first win in the workplace.”
Why Employees look to move out:
An employee left your company because he got a rise in another company or better salary – that is an external reason, and it happens after much afterthought from an employee’s end. But in most cases the first trigger has been pulled much before that.
When an employee experiences burnout for 2-3 months at a go, it creates apathy in his/her mind. That frustration in employees mind creates disengagement between that employee and company.
At times when employee performance feedbacks lacks clarity and the employee start feeling he has been treated unfairly by his Company. He/she looks to move out.
Sometimes when his/her friends who belong to same rank in other companies draws higher package, that is also becomes a case of frustration in the employee’s mind.
There can be one more reason why employees look to move out, that is when they find their work is not helping in stretching their expertise and skills. They leave when they stop growing.
Employees as Assets:
“We can never fall short when it comes to recruiting, hiring, maintaining and growing our workforce. It is the employees who make our organization’s success a reality.”
― Vern Dosch, Wired Differently
World class enterprises makes today’s employees tomorrow’s employers. Employees are the life blood of any organization.
There was a time when the US and European countries were economic superpowers. Economists predicted that political instability, illiteracy and higher population ration would not allow the third world countries to survive. But what we have overlooked is the fact, the power of population in contributing to GDP and bulging business. With all their weakness today China and India are on the path of becoming an economic prowess. Thanks to people power.