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Employee quitting

4 Ways to Prevent Your Employees From Quitting

When you hire a new employee, that person is already looking for a new job and at risk of quitting. That rather dire warning is offered by Dan Schawbel, research director at Future Workplace and one of Forbes’ “30 under 30” list. Schawbel cites a study by his company showing that one-third of American workers are at the risk of quitting and looking to change their jobs within the next six months. Employee turnover, he points out, “costs companies a fortune,” and the numbers agree: Losing an employee in the first year of their tenure can cost your company up to three times the person’s annual salary. Clearly, employee retention is a top priority for every organization and it’s HR’s duty to build a strategy that can prevent employees from quitting. Here are four HR best practices to strengthen work culture and protect your company from the high cost of worker churn.

1. Provide relevant training opportunities

As Schawbel investigated the underlying causes for employee attrition, he found a major perception gap between management and workers when it came to a training and development. Sixty percent of managers reported that they provide their employees with a clear path for advancing their careers, while only 36 percent of workers felt that this was true. This discrepancy needs your attention, because you ignore it at your peril: Employees (especially the highly talented ones you’d most like to retain) have more power than they once did, because their skills are in demand. Schawbel’s study found that 41 percent of employees say that they would leave their present companies if they found a position that offered better career advancement.

These numbers suggest that there is more to this equation than simply providing opportunities for training and development. That’s the first step, of course: A study of 4,300 workers found that 74 percent don’t feel that they’re achieving their full potential in their current position, and only 12 percent feel that the training they did receive is actually applicable to their job duties. Along with offering appropriate pathways for your workers to develop their skills, you should ask for frequent feedback to make sure that these opportunities are perceived as being relevant and useful.

2. Encourage healthy work-life balance

Thirty-nine percent of employees state that a negative balance between work obligations and the rest of their lives constituted a “major pain point” in their careers. These statistics are highlighted by Rich Hein, senior managing editor of CIO Magazine. He points out that the average tenure for an IT worker these days is less than four years, and an unmanageable set of work demands is one of the main culprits for this high turnover rate.

While you can’t necessarily relieve each employee’s outside personal challenges, Hein points out that your organization will benefit by offering flexible hours or telecommuting options. Multiple studies reflect the fact that providing flexibility to employees results in fewer sick hours, greater employee happiness, higher productivity and less stress.

3. Keep your managers in the spotlight

It’s an old truism that people don’t quit jobs — they quit bosses. Even if you’re well aware of this basic human resources principle, it never hurts to be reminded that your management-level staff are key to retaining your workforce. “One manager with poor people skills can do damage to the culture and effectiveness of a company in a short period of time,” points out Maricopa County CIO David Stevens. Too often, people with outstanding technical know-how are promoted to leadership positions, where an entirely different skillset is needed. Fortunately, management training and coaching can be highly effective, and can enable your middle management staff to perform at their full potential.

Productivity consultant Laura Vanderkam adds an interesting twist to this standard advice. She points out that a manager may feel attached to keeping a “rockstar employee” in his or her department, and may be reluctant to provide development training that would advance the person’s career. For this reason, Vanderkam encourages executives and HR specialists to specifically reward managers who successfully move their outstanding employees forward into different departments. The manager’s individual loss will be the organization’s gain, as employee alignment will be strengthened by new career opportunities.

4. Show your employees that you appreciate them

Wayfair CEO Niraj Shah identifies employee rewards and recognition as one of his three key ways for retaining employees. He acknowledges how easy it is for busy managers to put employee retention “on the back burner,” and he finds that continuous positive feedback is his go-to method of letting employees know how valuable they are to the company.

There’s an art to employee recognition best practices, however: It’s important to provide feedback on an ongoing basis, but workplace expert Lynn Taylor points out that it can’t be “robotic.” Your appreciation needs to be authentic and varied, delivered in a variety of forms. To keep a sense of freshness present in your appreciation, you can change up the channels: Providing your workers with a chance to recognize and praise each other’s contributions will nurture teamwork. Similarly, you may sometimes recognize the unified efforts of a whole team or department, so that it’s clear that everyone benefits from strong employee alignment.

You invest significant resources into recruiting and hiring. Once you’ve onboarded those top-notch employees, however, your HR challenge is only beginning. Lynn Taylor reminds managers, “Retaining the best and brightest is what ultimately matters. The most innovative and successful companies today [have] taken retention efforts to an advanced level.” To learn more about the current retention epidemic and how to prevent your employees from quitting, check out our latest report highlighting key findings from a survey taken by 1,724 employees across the U.S., Canada, UK, and Australia.

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How would you prevent an employee from quitting? Share your comments below.

 

employee disengagement

How to Address Early Signs of Employee Disengagement

According to the Work Institute’s 2017 Retention Report, 75% of the causes of employee turnover are preventable. That’s excellent news for your HR budget, as the cost of replacing entry-level employees alone hovers near $4,000 per position. A small change in human behavior can be enough to indicate damage in employee motivation. Yet, detecting early signs of employee disengagement is never an easy task. It requires excellent observation skills and strong empathy to respond in a way that restores engagement across your organization.

At a time where barriers between leaders and employees are at an all-time low and with 70% of employees wanting to spend more time with their manager, simple actions stemming from emotional intelligence and intuitive leadership are powerful enough to correct a subtle motivation drop. Here’s engagement clinics to discover how you can address early signs of employee disengagement.

Note: All names have been changed for privacy considerations.

High Performers: Empowerment is Not Anarchy

Efficient, committed, and highly engaged, Jane was the next talent to accelerate.

Jane’s manager assumed that since she was a high performer, she didn’t need much handholding to sustain her performance. But Jane’s sense of achievement dropped in the course of a few months, an early sign of employee disengagement.

The challenge for any leader is to adjust space for employees to be empowered. For a high performer, too much attention to what she does is micro management. But attention to how she does it and why she does do it can give off the wrong message.

Early Signs of Disengagement - High Performers

Treatment

As any other employee, high performers need frequent recognition to protect their sense of belonging. They want strong feedback to reach excellence in their work. And they crave coaching and mentoring to level up their “soft” skills. After all, 68% of millennials who intend to stay in their company for the next 5 years are involved in mentoring programs.

Discovery of Potential: Stories and Limiting Beliefs

I remember very well Simon. Simon was the go-to expert in his area. Considering his immense knowledge and potential for relationship-building, I assumed his next step was to develop his leadership skills.

What I underestimated at the time is that Simon had little appetite for stepping out of his comfort zone. Early signs of employee disengagement showed up as plain resistance, from “I’m not sure I can do it” to “this is completely useless!”.

Each leader should pay extra attention to words of resistance. Resistance is the seed for limiting beliefs that can become given realities for the employee, and get in the way of performance.

Early Signs of Disengagement - Resistance

Treatment

80% of employees would work longer hours for a more empathetic employer. An emotionally intelligent leader knows that a huge part of the job is to attend to team members and support them towards having a delicate balance of confidence and performance. Performance starts with clear goals. Confidence grows when you support your employees as they achieve those goals, and show them where their true potential is.

In Tune with Culture: The “Selective Memory” Syndrome

How often do you try to communicate a message to your team and some still don’t get it? Frustrating, right? It’s nothing else than human nature.

Driven by fight or flight responses, humans are not wired to navigate change easily. If you try to suggest change towards the way your team behaves, you can might be criticized or worse, ignored. It could be tempting to take criticism as “venting moments”. But if left unaddressed, those early signs of employee disengagement can lead team members to question if their values are still aligned to the company’s mission and values.

Early Signs of Disengagement - Aversion

Treatment

According to Deloitte’s Talent 2020 series, “performing meaningful work” is one of the top three motivational drivers for employees. For team leaders, it could be as simple as making top level communications relatable for everyone and taking the time understand what type of work each of your team members enjoys doing.

In addition, listening to your employees on a daily basis fosters a safe space for them to express their opinion. With the availability of advanced HR technology listening to your employees on a daily basis is now easier than ever. Check out intelligent active listening interfaces such as Achievers’ Allie™. With Allie, you can get clear insights on your employees’ pulse and receive honest feedback.

Final Thoughts

 Deloitte just released its 2018 Human Capital Trends report, where it stated the following:

“Most companies are struggling to recruit and develop these human skills of the future. Despite having an increasingly clear understanding of the skills needed in a world where humans work side by side with machines, 49% of respondents do not have a plan to cultivate them.”

One of those “human skills of the future” is to ensure your leadership includes the best employee engagement and retention tactic: fostering human connections so that you can spot (and address) early signs of employee disengagement.

Do you want to learn more about employee disengagement? Check out Achievers’ white paper, The True Cost of Employee Disengagement.
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Are you free in October? Discover where the future of HR technology and employee engagement is heading by attending Achievers Customer Experience (ACE) 2018 in Toronto, October 23-24. Get the early bird rate and save $200 off the regular rate today. Buy now here.

Do you have any thoughts on this article? Share your comments below.

About the Author
Coralie Sawruk
Coralie Sawruk helps global organizations create efficient team dynamics. A people-person at heart, she believes the ultimate competitive advantage is created by the right talents working hand-in-hand, cheerfully. Coralie shares her insights on human-centric leadership and leading happy teams on her website. Get in touch on LinkedIn

 

 

 

 

 

Important HR Strategies

3 HR Strategies You May Have Overlooked

Create employee handbooks

Track employee hours

Draft contracts for new employees

Manage company benefits

Handle employee complaints

The list goes on and on. Across many industries, the role of HR has traditionally focused on endless paperwork and organizational policy development.

However, in today’s technologically-enhanced workforce, the traditional role of HR is swiftly shifting. Many organizations have undergone significant changes in light of new employment regulations and more diverse, younger employees who demand modern HR departments. Above all, experts agree that the role of the HR team is now genuinely impacted by the rapidly expanding availability of technology and digital tools.

So the role of today’s HR director, manager or executive must parallel the needs of their ever-changing organization. Successful companies also realize they must become more adaptive, resilient and customer-centered.

Taking a More Strategic Approach to HR Management

The evolution of technology allows HR professionals to take on more strategic roles in today’s HR landscape. Organizations must shift towards strategic human resource management or use the HR department to formulate HR strategies based on the company’s short- and long-term goals.

As a result, the decisions that departments make must reflect goals that the company has set. For example, if the organization plans to expand, HR’s recruitment strategy should focus on creating systems that will allow the company to recruit and hire top talent. Within this new type of environment, the HR team acts as a strategic business partner as well as a change mentor.

Here are three additional HR strategies your organization may be overlooking:

Create a Retention Strategy

Did you know that the costs of employee turnover can range from 30 percent to 150 percent of the employee’s salary? Retaining talented team members can distinguish truly successful companies from not so successful ones. Many employees leave their jobs when they are disengaged. So today’s HR professional must identify what could make people in their company disengaged and figure out ways to remedy these issues.

A strong work-life balance helps create a solid retention strategy. Organizations that promote a positive work-life balance report lower turnover and recruiting costs and increased productivity from satisfied, engaged employees.

Additional successful retention tactics might include giving employees additional time off, supporting working parents via on-site day care or job sharing, and offering flexible schedules to accommodate busy families or supporting continuing education. Employees who have time to spend on maintaining their home life look at work less like just another chore to finish.

Encourage a C-Level HR Support Strategy

If you read anything about organizational change, it typically begins with the need for executive buy-in and support. Changing HR’s role is no different. While many of today’s leaders and CEOs do understand the need for HR’s role stand on equal footing as any other business function, others tend to get stuck in a different mindset that is focused on keeping HR behind the scenes.

To shift management’s support of HR from providing transactional processing to offering valuable business insight, experts suggest first creating a business case for change. This method can compel HR to specify why their HR strategies need a more forward-thinking model, and clearly and effectively spell out the major advantages to the company.

Develop an HR Analytics Strategy

If you want to make your HR processes as efficient as possible, implement the right tech tools for your company, especially those tools that focus on analytics like business intelligence, employee feedback or employee recognition and engagement data. The power of analytics allows HR departments to use employee data to help management make more informed decisions about their team members and improve overall performance. Additionally, analytics can provide insight for effectively managing employees to reach company-wide goals more efficiently. With an analytics strategy firmly in place, executives can also better forecast a company’s future staffing needs.

One of the most critical advantages of incorporating an HR analytics strategy is having information ready and available for future leadership needs. Companies can develop everything from recruiting and development plans to succession tactics with data they’ve collected. Often an overlooked area, a succession plan can help minimize disruption by identifying vital roles in a company and employees who possess the skills to assume these positions immediately should someone leave.

HR teams can also track and measure data to continually improve organizational processes with an analytics strategy in place. For example, much of the HR technology available on the market today can help businesses make more informed decisions about what metrics are most critical to the company culture and overall business goals, as well as track them to drive employee engagement.

The Bottom Line

It is important to understand that implementing the latest HR strategies is an ongoing process. HR should plan to regularly review its approach and adjust various elements as the company changes.

Ultimately, to remain competitive, HR professionals today must clearly articulate their key role regarding the actual value they create for their organization. Equally important, senior executives must support and invest in HR as if it were its own business, surpassing the stereotype of HR professionals as simply support staff and unleashing their full potential as company-wide strategic partners.

How strong are your HR strategies? Do you have a retention strategy in place? Get started with Achievers’ infographic on 6 Stats That Speak to Employee Retention.

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Are you having trouble engaging your employees? Learn how to address employee disengagement with Achievers’ white paper on The True Cost of Employee Disengagement.

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About the Author
Lisa Dunn
Lisa C. Dunn a freelance writer, copywriter and ghostwriter who develops high-quality content for businesses and non-profit organizations. For over 20 years, she has worked with numerous PR and digital marketing agencies, and her work has been featured in well-known publications including Forbes, VentureBeat, Mashable, Huffington Post, Wired, B2C, USA Today, among many others.

 

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why employees quit

Understanding Why Employees Quit

Knowing what makes employees quit — and then heading off those problems — is the goal of every HR department. While you’ll never be able to avoid individual events that disrupt the lives of workers and their families, it’s helpful to have an overview of preventable causes for employee churn. People leave jobs for several classic reasons, according to Harvard Business Review, all of which are somewhat predictable. The key is to understand each reason well enough to defuse it with a proactive intervention. Here are the main reasons workers cite for leaving their positions, and how you can slow this expensive leakage and build your employee retention:

They Don’t Get Along with Their Boss

This reason is the elephant in the room, and we can’t discuss employee retention without starting here. Gallup CEO Jim Clifton points out the primacy of management know-how: “When you name the wrong person manager, nothing fixes that bad decision. Not compensation, not benefits — nothing.”

When an exit interview or other feedback shows that you have a problem manager, you need to rectify the situation as soon as possible. If the person seems open to developing new skills, it’s often worthwhile to provide them with intensive management training. However, if real change doesn’t seem possible, you’ll ultimately save money by replacing them with someone who simply has better management skills.

Their Lives Take a New Direction

This may be unexpected, but research cited in Harvard Business Review notes that job-hunting rates jump by 12 percent right before a worker’s birthday. Researchers speculate that a person is often stimulated by the arrival of their birthday or another milestone to take stock of their life and see if their career is going in the direction they want. While you have limited input into this private self-examination, it’s helpful to incorporate a personal check-in along with celebrating your employees’ birthdays. Are they happy with their job? What are their current thoughts and ambitions?

Their Careers Aren’t Moving Forward

In today’s networked marketplace, your most talented employees are going to keep an eye on opportunities in their field, and Gallup’s 2017 report on the State of the American Workforce finds that 51 percent of them are ready to jump ship at any given moment by actively looking for a new job or watching for openings. Harvard Business Review notes that Credit Suisse responded to this tendency by having their internal recruiters cold-call employees to let them know about new openings arising within the company that they might be qualified to fill. This program ended up moving 300 employees into more challenging positions and saved the company $75 to $100 million in employee turnover costs.

They Don’t Feel Challenged

Human resources expert Susan Heathfield warns employers that they have to make sure their workers are actually using their skills and abilities, and Gallup’s report found that 68 percent of today’s workers feel they’re over-educated for their current positions. While this is related to building a career path, it’s not the same. A position may have a title that looks great on a resume, but if the day-to-day operations don’t actually feel interesting and engaging, the worker is going to be looking for the exit door. Heathfield notes, “Work closely with employees who report to you to ensure that each employee is engaged, excited, and challenged to contribute, create, and perform. Otherwise, you will lose them to an employer who will.”

The Company Lacks Vision

To keep great workers, you have to make it possible for them to feel aligned with a company vision that’s both meaningful and tangible. Gallup CEO Jim Clifton, in his foreword to the 2017 report, puts it succinctly: “Change from a culture of “paycheck” to a culture of “purpose.” Your very best employees are the ones with a powerful sense of internal motivation, and you nurture that motivation by showing them how their efforts contribute to the overall goals of the company. CNBC notes, “Some of the most successful companies are able to attract and retain great employees because they are great at communicating their vision all the way from the top down to the front-line workers.”

Their Efforts Aren’t Recognized

While it’s essential to give your employees the sense of purpose mentioned above, that alone is not sufficient. Even your top workers, who care passionately about doing a good job, still have a psychological need to be recognized for the effort they expend. Emotional intelligence leader Travis Bradberry comments that a failure to recognize good work is one of the biggest mistakes a manager can make. He writes, “It’s easy to underestimate the power of a pat on the back, especially with top performers who are intrinsically motivated. Everyone likes kudos, none more so than those who work hard and give their all.” Establishing a system for employee rewards and recognition is fundamental to nurturing those human resources that your company is lucky enough to have.

In today’s tight labor market, it’s more expensive than ever to lose a good worker. Josh Bersin of Deloitte points out that employees are “appreciating assets,” while the cost of losing one is generally about 1.5 to 2 times the person’s annual salary. Furthermore, the increasing team emphasis of many workplaces makes it harder than ever to integrate a new hire. Keeping your workers engaged is essential to running a successful business, and every manager needs to stay focused on this goal. To learn more about employee turnover, check out our infographic 6 Stats That Speak to Employee Retention.

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UK HR Directors Summit 2018

Event Activities at UK HR Directors Summit in Birmingham, February 6-7, 2018

The latest report from Gallup states that just 1 in 10 UK and EU workers are actively engaged and with UK productivity seeing further falls during 2017, according to the Office for National Statistics – it is no surprise that the UK Government recognizes that the country has an employee productivity problem.  The UK’s newly announced Industrial Strategy is based on “Five Foundations of Productivity”, one of these Foundations being ‘People’. As an organization that lives and breathes employee engagement and sees the business benefits first-hand of the power of putting people at the heart of the strategy, this is welcome news.

The impact of employee engagement on key business objectives is staggering. According to Gallup, highly engaged business units see:

  • a 17 percent increase in productivity
  • 24 percent less employee turnover
  • a 41 percent reduction in absenteeism

The importance of employee engagement on key business performance metrics cannot be ignored. On February 6-7, the Achievers team will be heading to the ICC, Birmingham, UK, for the 16th HR Directors Summit. This year’s pertinent theme is ‘Curators of the New Business Landscape – Guiding Strategic Growth’.

The UK HR Directors Summit is one of the largest gatherings of senior HR Executives from across the globe and welcomes 800+ of the highest level of industry experts, strategic thinkers, innovators, and HR leaders.

It is a leading forum that connects the best in business leadership and promises to arm leaders of all people-focused functions with the tools necessary to transform themselves not only into more functionally-confident business leaders, but to fortify the HR position as a value-generating machine necessary to ensure future prosperity, profitability, wellbeing, and financial success.

The 2018 UK HR Directors Summit will host 150+ speakers in 8 content streams, 70+ Exhibitors, 250+ Match Meetings and 11+ hours of networking spread across 2 days. And with an amazing line-up of keynote speakers, it is a must-attend event for any senior HR professional looking to get inspired and motivated for the year ahead.

Denise Willett, Achievers’ EMEA Senior Director, will be taking the stage on day two at 12:00 PM to discuss ‘Using Recognition to Drive Engagement and Business Results’. She will she share how leading organizations are leveraging HR technology to complete the loop from measure to action, increasing employee engagement and driving business performance.

In addition, some of this year’s line-up of keynote speakers include:

  • Josh Bersin – Principal and Founder
  • Nilofer Merchant – 50 Thinker, Best Selling Business Author
  • McDonalds – Paula Coughlan, Chief People Strategy Officer
  • ABB – Jean-Christophe Deslarzes, CHRO
  • Nokia – Joel Casse, Global Head of Leadership Development
  • Avon – Dr Melissa K. Hungerford, VP Global Talent Management & Inclusion
  • Bosch – Rosa Lee, Senior VP
  • BT – Candice Cross, Group Head of Diversity and Inclusive Culture
  • Countrywide – Kate Brown, Group People Director

And this is just a taste of some of the amazing speakers this year. Check out the entire list of confirmed speakers here.

Don’t forget to join the conversation on social media with the hashtag #HRD18 and by following @Achievers on Twitter.

Tickets are now very limited so register here today! Be sure to pop by to chat with the Achievers’ team at Stand #56 and look out for Denise Willett’s presentation at 12:00 PM on February 7th. And for those looking to book a meeting with Achievers at this event, please book a meeting here. See you in Birmingham!

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About the Author
Ruth Chapman
Ruth Chapman is Achievers’ Marketing Manager (EMEA) and is focused on growing awareness for the Achievers brand in the UK and wider EMEA marketplace. It is her mission to communicate the success that Achievers employee recognition and engagement platform is driving for its clients. Learn more about Achievers here.

 

 

 

Reduce Employee Turnover

4 Ways to Reduce Employee Turnover and Improve Your Bottom Line

Employee turnover is one of the most bottom line busting costs associated with a company’s workforce. SHRM estimates that, for entry-level employees, the cost to fill an open position hovers near $4,000. Using this insight, if your company loses 100 employees a year, your company experiences a loss of at least $400,000.

While this number is certainly frightening, the good news is that turnover is an easily avoidable problem and with the right tools, your company can ensure that top talent is not leaving your company. It’s also worth mentioning that none of the following causes and solutions presented here exist in a vacuum—when an employee quits his or her job, it’s usually a reflection of many factors that led him or her to finally quit.

That being said, what tools and initiatives will help you reduce employee turnover? Let’s jump right in…

  1. Hire Managers Who Manage Well

Hiring managers and putting people in charge who show compassion and have the skills to manage others is one method to combat employee turnover on the front lines. Achievers employee survey showed that 57% of employees don’t feel recognized at work, and Entrepreneur claims that when workers are not recognized, they are not motivated. Low motivation can make an employee that much closer to quitting his or her job, or even put him or her over the edge far enough to finally quit.

Performing a top-down audit of your management team can have a huge effect on your entry-level workforce. While you may not have direct contact with these employees, the managers you choose certainly do. It is absolutely crucial that your management team is personable and qualified to lead. Poor managers also make it more difficult for an employee to work, and if the job itself (which may already be difficult by nature) is harder than necessary, an employee might find it not worth it to work there any longer. Address this issue early on by being transparent with recruiters about what traits you’re looking for in a manager during the hiring process.

  1. Be Flexible

Work flexibility is important for every employee at every level. I’m sure you can remember the last time you had to leave the office early or take a personal day for an inevitable issue. Being flexible with policies and protocols shows your employees that you understand that life happens. When an employee thinks that his or her employer is understanding, you reduce his or her risk of leaving the company. On the other hand, if an employee thinks that the company doesn’t understand his or her life situation, then it’s more likely that the employee will try to find a job for an employer who does care.

On the same train of thought, flexibility in other areas will show your employees that the company cares about them. Since entry-level employees may not be making as much money as they need to be able to save a hefty sum for emergency expenses, offering financial flexibility is another area to focus on if your company cannot afford to pay them more. One such initiative is allowing your employees to control the frequency of their pay. Simple add-ons to your existing payroll system allow you to do this at no cost to your company and no changes to the way your company handles payroll. In result, a study by DailyPay showed that employees are 1.9x more likely to apply for a position whose job description mentions that it offers daily payments.

  1. Prioritize Recognition and Rewards

Along with the previous point about hiring managers that care, instilling an employee recognition and rewards program that allows you to easily highlight achievements and strong work will also show your employees that you care and appreciate them. Making it as simple as possible for your managers to recognize employees on a daily basis will help ensure that your managers are actively participating. By promoting this type of program across your organization, you are letting employees know that your company takes employee recognition and happiness very seriously.

Recognizing employees will directly help improve your bottom line. For example, an Achievers’ video highlighted the following findings:

  • a 1% increase in employee engagement returns an additional .6% growth in sales for your company
  • 50% of HR leaders said that an increase in employee recognition would boost employee retention
  1. Offer Unique Advantages

In the current job market, it’s becoming increasingly harder and harder to hire top talent due to the record low unemployment rate and tight job market. Employees across all industries and skill levels are continually searching around to see which company will offer him or her the best complete package. Additionally, it’s been reported that if you offer help to improve financial wellness, employees are more willing to work for your company. The plain advice is that offering work perks and advantages that your competitors are not offering will help put your business ahead in overall employee preference.

Now more than ever, it’s crucial that your company is doing everything in its power to retain your current workforce and improve its employee retention rate. Since it is incredibly hard to fill open positions, you must prevent the need to fill open positions by retaining your workforce. In turn, your company will save time and improve its bottom line significantly without the recruitment costs and countless hours spent searching for talent. Try out some of these tips and let us know which worked best for your company.

To learn more about employee retention, check out this fun infographic covering 6 Stats That Speak to Employee Retention.

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About the Author
Seth LoftisSeth Loftis
Seth Loftis works at DailyPay, Inc., a financial solutions company dedicated to reducing employee turnover by improving the financial lives of employees. Employees can receive their wages days before their scheduled payday at no cost to your company or change to your existing payroll system. Learn more at trydailypay.com or follow them on Twitter or LinkedIn.

 

 

 

 

ACE 2017 Achievers Customer Experience

ACE 2017: Day One Highlights

Achievers annual mix of festivity and networking is in full swing with the 50 Most Engaged Workplace Awards Gala and day one of Achievers Customer Experience 2017 (ACE 2017) already in the books.

The 7th annual Achievers 50 Most Engaged Workplaces took place on Monday, September 11th at the historic Saenger Theater in New Orleans. Amidst the finely dressed titans of the HR space, exquisite cuisine, and glamorous ambiance was the highlight of the show, celebrating the companies that go above and beyond in the employee engagement space as determined by a panel of employee engagement experts. After this incredible evening of industry elegance, Achievers announced the crème de la crème, the eight most engaged workplaces. This year, the Elite Eight consists of:

  • Alliance Data for Leadership
  • Electronic Arts for Communication
  • ARI for Culture
  • ATB Financial for Rewards & Recognition
  • ArcelorMittal Dofasco for Professional & Personal Growth
  • Cadillac Fairview Corporation Limited for Accountability & Performance
  • Reynolds American, Inc. for Vision & Values
  • Total Quality Logistics for Corporate Social Responsibility

After an unforgettable night of celebration, ACE 2017 kicked-off on a positive vibe. Prominent members of the Achievers Leadership team shared the success story of CHRISTUS St. Michael Health System. After partnering with Achievers in 2012, CHRISTUS St. Michael saw:

  • a 4,500% increase in recognition given compared to the organization’s prior “home-grown” manual paper solution.
  • a 10% increase in associate engagement specific to leadership recognition from 66% to 77%.
  • a decreased turnover rate to an impressively low 6.4%, significantly below the industry standard annual turnover rate of 19.6%.

In addition to the A-players of Achievers, the opening session featured Blackhawk Network CEO Talbott Roche, who said of the event, ““This is all about celebrating the success you have with Achievers. One of my favorite topics is about innovation. Achievers’ platform is used to drive not just business results, but also innovation through engagement. It’s about how to use a platform to deeply engage. Engaged employees matter to company success. Companies with engaged workers have 6% higher financial results.”

After the keynote speeches ended, it was onto the fantastic slate of HR thought leaders discussing hot-button HR tech topics like employee engagement, rewards and recognition, and how to gain executive buy-in for engagement initiatives. Among the many memorable sessions was a presentation from Rocky Ozaki of NOW Innovations, who shared culture and operational best practices you should adopt to compete in the NoW. Beginning with a brief glimpse into the history of work, Rocky explained how the connected generation, technology and the sharing economy have solidified that the future is NoW.

With the war for talent raging, attracting top talent is harder than ever before. There is a remedy that can alleviate the need for competing for the most talented candidates on the market: retaining the top talent you do have. Cara Silletto, President and Chief Retention Officer of Crescendo Strategies offered insight into how companies can be better aligned with the wants and needs of a constantly evolving workforce, ensuring that the talent you’ve worked so hard to obtain stays with your company for the long haul.

ACE 2017 also featured numerous testimonials from Achievers customers illustrating how an investment in employee engagement can lead to tangible business results such as decreased employee turnover, increased productivity, and an improved bottom line. Becky Etsby, Senior Vice President of Human Resources and Organizational Development at Coborn’s, an employee-owned grocery store with more than 120 locations, stated as much during her presentation, “When employees are engaged, they really do care about the company and can affect a company’s profitability”.

After such an amazing day, it is hard to believe there is more to come. With speakers like Carey Lohrenz, the first female F-14 fighter pilot, day two of ACE 2017 is sure to be equally amazing. Check out all the amazing photos from Day 1 of ACE 2017 here.

Follow the conversation on social media with #AACE17 and follow us on Twitter @ Achievers.

50 ME Marquee

Achievers 50 Most Engaged Workplaces Awards Gala, always a marquee event

Brie Harvey

Brie Harvey, the face of ACE

50 ME Awards

50 Most Engaged Workplaces Awards Gala

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A-players with A-plus smiles

ACE Social Event

Achievers’ Greg Brown and Chase Dolomont getting their grub on

ACE 2017 Stilt/Juggler

Post ACE march to B.B. King’s

ACE 2017 Tarot Card Reading

“I see in your future a trip to ACE 2018”

 

 

 

 

 

 

 

 

 

 

Increase Employee Retention

Who Owns Retention? The Real Employee Turnover Problem

What’s the biggest problem when it comes to employee turnover? No one owns retention!

At many companies, when turnover rises executives point to HR to fix it – whose plate is already overflowing with terminations, payroll, benefits management, and back-fill recruiting. HR then blames bad managers for running off good people, and the managers push back complaining that executives do not give them enough time or training to manage their people properly. They all have a point, but this blame game is costing those organizations tons of money!

Stop Focusing on the Symptoms…Find & Fix the Cause!

After much finger-pointing, companies often come to the conclusion, “We have so much turnover, we need to hire another recruiter.” Are they kidding? That’s like trying to fix a water main break with duct tape. You may temporarily slow down the deluge, but not for long! If turnover is the problem, then you don’t need to hire someone who’s good at recruiting – they’ll just struggle to fill all the positions that keep unexpectedly being vacated. You need a dedicated retention specialist who will diagnose the core issues, work to resolve them, and maintain a stable workforce moving forward.

So why is the default next step to add another recruiter? Because everyone knows what a recruiter does and which line item that goes under on the P&L.

Now before you get upset, I assure you I’m not anti-recruiter! Recruiters are great, when you need a recruiter! If turnover is a problem, it is very possible that reworking your recruiting processes might be needed as well. Perhaps you really are hiring the wrong people and/or it is time to revamp the interview process, selection criteria, and applicant communication plan. You may even need to improve your employer brand in your community if you don’t have a positive reputation as an employer in your area. These are all things a good recruiter could handle, but these changes are rarely enough if retention is rising.

So if you can get approval for a new position, how about pitching the idea of a retention specialist instead? It’s a tougher sell to get approval from the higher-ups – they’ll wonder what a retention specialist is, complain the role sounds fluffy and become convinced it’s going to add overhead costs that seem unnecessary – but you must fight for it! It’s time to get more resources to fix the real issue.

What Is a Retention Specialist Exactly?

More organizations are creating this type of position and the responsibilities certainly vary from company to company, but their primary roles are to determine why people are leaving, and to build relationships and initiatives that extend employee tenure. This often includes, but is not limited to:

  • conducting and analyzing employee surveys and stay interviews
  • building employee networks/committees
  • serving as an employee ambassador who can answer staff questions or listen to feedback
  • ensuring the onboarding process is welcoming, thorough and incorporates the company culture
  • determining gaps where additional supervisor/management training is needed
  • coordinating (and possibly conducting) supervisor/management training and development programs
  • identifying operational/system changes that help adjust to a shorter-term workforce
  • analyzing compensation, advancement opportunities and scheduling for models that better align with today’s workforce’s needs
  • implementing recognition and appreciation programs across organization
  • ascertaining ways the organization and managers can be more transparent with employees
  • developing effective staff meeting schedules, agendas, and tools for those leading meetings
  • crafting organizational messages that instill the company’s mission and core values

Sounds like a full-time job to me! Who on your current staff has time to do all these things that are needed to reduce unnecessary employee turnover?

One Person Won’t Resolve the Issue – Retention is Everyone’s Job

While having a dedicated staffer to focus on diagnosing and resolving turnover issues is essential, leaders at all levels must take turnover seriously. Just like customer service, retention should be part of everyone’s job and everyone’s training. Keep in mind, workers today will leave their jobs if they don’t like their immediate supervisor, the leadership team or their coworkers, so encouraging your entire staff to attract and retain talent is critical.

Is your organization incentivizing peer referrals? Is your company rewarding managers for improved retention within their departments? Or are they setting bonus plans according to the concept of “do more with less,” which is driving away the talent you can’t afford to lose.

Become a Champion for Retention

So where do HR professionals start? Here a few ways to attack the turnover crisis:

  1. Create recognition and/or incentive programs for employees who reach certain milestones (after one year, not five!).
  2. Demand more management training for everyone who has direct reports.
  3. Make a case for hiring (or becoming) a retention specialist.

Same Approach = Same Results

If the trajectory of your employee turnover is headed in a positive direction, keep doing what you’re doing. But if your retention is getting worse every year, it is time to try a new approach for attracting and retaining today’s new workforce!

If you want to learn more about how to effectively retain employees, join me at Achievers Customer Experience (ACE) 2017 September 12-13 where I will be speaking on Leading the New Workforce: The Evolution of Employee Expectations. Check out details of my speaking session and the event here.

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About the Author
Cara Silletto
Workforce thought leader Cara Silletto, MBA, is the President & Chief Retention Officer at Crescendo Strategies, a firm committed to reducing unnecessary employee turnover by bridging generational gaps and making leaders more effective in their roles. Cara is a highly-sought-after national speaker and trainer, having conducted more than 100 engagements in 2016 alone. She has spoken to more than 10,000 leaders across the country at companies including UPS, Toyota, Humana’s Learning Consortium, and Cintas. Workforce Magazine named her a “Game Changer,” Recruiter.com included her in their 2016 “Top 10 Company Culture Experts to Watch” list, and she is a co-author of the book, What’s Next in HR. Follow Cara on Twitter @CrescendoHR.

 

retain employees

4 Ways to Avoid the Dreaded High-Turnover Rate

The cost of employee turnover is outrageously high. When a company loses a salaried employee, it can cost anywhere from six to nine months’ worth of the departed employee’s salary to hire a replacement. This means that if an employee is being paid $40,000 a year, the cost of everything from recruiting to training expenses will be around $20,000 to $30,000. In addition to costing your company a fortune, it can discourage talented employees from joining your organization. High turnover is one of the major red flags job seekers look for when considering a new employment opportunity.

Here are four ways companies can step up their game and hold on to the talented employees they worked hard to acquire:

  1. Get Rid of Top-Down Management

Everything in the business world is evolving and the concept of management is not immune. Many of the old rules and practices no longer apply, and the lack of a modern workplace philosophy is forcing skilled workers to leave their current company and take their talent elsewhere. The top-down approach to leadership and ruling with an iron fist is no longer a popular way to run a business.

In today’s workplace, the term “collaborative leadership” is commonly cited as a strong approach to employee management. This concept emphasizes leading by example and focusing on both corporate and individual benefit. For instance, Jacob Morgan, author of The Future Of Work, explained in a Forbes article how AMP Bank in Sydney, Australia makes it a point to sit down with each employee to explain how new technologies and strategies can benefit both parties.

It’s important to realize the vital role management plays in the development of a company. Gallup estimates that managers account for 70 percent of the variance in employee engagement scores across business units. Great leadership is a crucial factor in retaining employees; it goes back to the famous saying that “people don’t leave jobs, they leave managers.”

  1. Learn What Millennials Want

By 2020, it’s estimated that nearly half of the workforce in the United States will be comprised of millennials. Therefore, it is crucial to determine what these younger employees want out of a company. Ask yourself the following questions:

Millennials are looking for more than just a job with a steady paycheck, they want careers in which they are engaged with their company’s goals, and can develop their professional skills. A 2014 survey conducted by the Harvard Business Review and The Energy Project found that employees are most engaged when these four core needs are being met:

  • Value – Being cared for by their supervisor
  • Purpose – Finding significance in their work
  • Focus – Prioritizing
  • Renewal – Ability to take needed breaks

Regardless of the age of the employee, there is nothing worse than being stuck at a job that isn’t motivating. Fostering employee engagement can be difficult. However, emphasizing honesty and transparency for both company and employee alike can be integral in obtaining uninhibited employee feedback to gauge the direction of your workforce and what motivates them.

  1. Promote a Culture of Innovation

Everyone wants to be involved in a cutting-edge organization. Companies that want to remain ahead of their competitors must do their best to promote this mindset both internally and externally. For starters, when you’re advertising a job opening, take a step back and examine what your company is doing differently than similar organizations. Once you have a firm answer, drive this idea home and showcase what your business is collectively bringing to the big picture compared to your competitors.

Based on your business, this can be a daunting task. But, regardless of what product or service you provide, there is always room for innovation. Take Michelin for example. Tires might not seem like an innovative product but the science behind how rubber interacts with the road is complex. To promote a company-wide innovative mindset, Michelin sponsors cross-functional hackathons and internal incubators where employees are free to take risks and come up with new ideas for the good of the company.

Making sure that innovation is a strong aspect of your culture can play an enormous role in keeping employees engaged and motivated.

  1. Recognize and Reward Employees

While this one might seem obvious, it is still accurate: everyone likes to know their hard work is being noticed. Great employees are hard to find, and even harder to keep. So when you notice colleagues going above and beyond the call of duty, it’s important to provide plenty of recognition and rewards to encourage repetition. Recognition is essential to employee engagement and The Corporate Leadership Council shared in a recent report that highly engaged employees are 87 percent less likely to leave the organization.

Events like company-sponsored happy hours or weekend getaways celebrating a strong quarter can go a long way in demonstrating to employees how much their work means to an organization. Going beyond these types of “job well done” gestures, making sure top performing employees are appropriately compensated is the most important factor in employee retention.

To address this, you can try setting up recognition and rewards programs that encourages daily praises and constant appreciation. Or consider implementing programs within the workplace that are transparent when it comes to pay raising goals, such as merit-based pay structures. Just be sure to set goals at a level in which employees will need to put their best foot forward, while remaining reasonably attainable.

Talented workers tend to know their worth. If you are not paying them appropriately, they will have no problem finding an organization that will.

Over to You

Retaining high performing employees in the current business climate is very challenging, and with the many detrimental costs of employee turnover, your company’s bottom line could be adversely affected. If your turnover rate is higher than you would like, it might be time to take a close look at day-to-day operations and find the root cause as to why people are so willing to leave your organization. Sometimes, it is a simple fix. Other times, a complete organizational reinvention is needed to ensure the external perception of your organization matches the internal. At the end of the day, a company that focuses on engaging their employees, whether through strong leadership, culture, recognition, or rewards is on the right track to reducing turnover.

To learn more about employee turnover, check out the blog post How to Spot Who’s Going to Quit Next.

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About the Author
Lori Wagoner is a market research consultant. She advises small businesses on new ways to find local and national business. She’s an avid blogger and writes for sites such as Small Business Can, Tweak Your Biz and Customer Think. You can catch her on Twitter @loridwagoner.

 

unbeatable workshop ideas

5 Fun Employee Workshops to Host in the Office

Office workshops break up the day, boost employee loyalty, and reduce turnover because they communicate the message that each individual contributor is more than a number. The key is in choosing the right workshops; the less they feel like a chore for employees, the more effective they’ll be. According to management training and leadership experts at Mind Tools, ineffective workshops can bring more problems than they actually solve: “Done wrong, they can be a huge waste of time and money. However, if they’re planned well, they can be incredibly valuable for everyone involved. Workshops are great for brainstorming, interactive learning, building relationships, and problem solving,”

Consider the following five workshop ideas and how they might fit with your company culture. Choose a few to sprinkle into the company calendar, adding variety and fun to the usual brainstorming sessions and project-focused meetings.

Lunch and Learn Workshop

Choose a day each month when all the members of your department converge for an hour to “network” internally. Cater lunch from a local restaurant or ask everyone to bring a potluck dish to make it more of a special event. Each month, one team or employee will share an important project they’re working on. The rest of the team can then provide constructive feedback and fresh ideas.

This open dialogue strengthens both the sense of camaraderie and level of collaboration between teams. It’s easy to operate in a siloed organization, but that’s not good for business, or your employees. Use your monthly “Lunch and Learn” to remind employees that their co-workers are valuable resources that they can and should turn to.

Self-Defense Workshop

Not all workshops need to be work related—in fact, to keep employees interested, it’s better if some aren’t. Workshops such as this one for self-defense show employees that you care about their well being, both in and out of the office:

“For companies who care about their employees, especially those whose employees regularly walk to their cars at night or alone, it would behoove employers to offer self-defense training courses for workers,” says Jeremy Pollack, self defense expert for Home Security Super Store.

The most important part of this workshop is choosing the correct instructor. Pollack suggests the following tips for vetting:

  • Does the instructor have videos you can look at?
  • Has an HR rep or a referring party been to an actual class and seen what the instructor has to offer?
  • How realistic is the instructor’s self-defense style, and how much real-world training and application does the instructor have?
  • Does he or she fit with the culture of your workplace?

Vision Board Workshop

Transform a conference room into a creative space for employees to make their own vision boards. Vision boards are a visual representation of how you want to feel or something you want to accomplish – a way to bring things inside you to life. Giving your employees the opportunity to create their own vision boards is an exercise in abstract thinking and serves as a way to help them explore avenues and inspiration for personal growth, both within the organization and as individuals.

A few key materials for this includes:

  • White boards and markers
  • Pens/pencils
  • Sticky notes
  • Magazines
  • Scissors

Host this workshop each month, allowing  a maximum of five participants each time. At the end of the workshop, have the participants share their favorite piece of the completed vision board with fellow employees. This should be inspirational and eye opening for everyone, even employees who didn’t participate that month.

Take it up a notch by inviting a life coach into the office. The five participants can talk with the life coach for 30 minutes as a group to start thinking creatively about their profession and growth. They can use this conversation to spur their ideas.

Mindfulness Workshop

Research conducted at the University of California Berkeley has found that practicing moment-to-moment awareness can reinforce an employees’ confidence, satisfaction, focus and productivity. Help them funnel these positives into their job performance by offering mindfulness workshops.

A few mindfulness workshops you can host include:

  • Meditation, guided with a focus on productivity
  • Yoga for reduced stress
  • Awareness and relaxation training
  • Work-life balance training

If employees love this workshop, you could make meditation and mindfulness a daily part of their routine. For example, schedule one conference room as “open” from 8-10am for quiet meditation every morning. People can choose to use it as they desire, boosting efficiency and well-being at the same time.

Financial Tools Workshop

Facilitating a money management seminar will help your employees understand the nuances of investment, budgeting, diversification and other financial concepts. Equipping people with the knowledge and resources to allocate their income wisely is both a source of empowerment for them and a reflection of your leadership expertise and concern for their overall well-being.

According to experts at Jumpstart Coalition for Personal Financial Literacy, “Companies providing financial education show improvement in the workplace including increased productivity, employee morale, and company loyalty and decreased healthcare costs, absenteeism, turnover, workplace distractions, and operational risk across the company.”

As the Jumpstart experts explain, a workshop like this is also beneficial to your bottom line, “Financial education programs have the effect of contributing to the company’s bottom line between $3 and $4 for every dollar spent.”

Financial workshop ideas include:

  • Financial tracking: Creating and maintaining a budget; setting goals.
  • Smart investing: How and where to invest; how to get the most for your money.
  • Credit cards: Smart use of credit; best ways to maintain good credit; what to look for in credit card rewards.
  • Retirement: How to prepare; what the company does to help; different types of accounts, along with benefits and drawbacks of each.

Regardless of your business’ overall size or scope, company growth is dependent on an engaged, cohesive and dynamic workforce. Therefore, offering workshops that benefit your employees, both professionally and personally, can mean the difference between attracting and maintaining top-tier talent versus mediocre space-fillers. Make your team feel appreciated, and their performance will speak for itself.

Are you looking for more ideas on how to improve your office culture? Check out my blog post 5 Company Initiatives That Improve Office Culture.

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About the Author
Jessica ThiefelsJessica Thiefels has been writing for more than 10 years and is currently a professional blogger and freelance writer. She spent the last two years working tirelessly for a small startup, where she learned a lot about running business and being resourceful. She now owns her own business and has been featured on Forbes. She’s also written for StartupNation, Manta, Glassdoor and more. Follow her on Twitter @Jlsander07 for more small business tips and ideas.

 

 

 

High Employee Turnover

How to Protect Your Company from High Employee Turnover

Every manager and HR professional views employee turnover as a headache, but do you actually know how expensive and damaging it can be to your organization? Here’s a look at the dimensions of this complex problem and some tested managerial practices to alleviate it with long-term solutions.

The dimensions of the problem

Current statistics from Catalyst show that it costs an average of one-fifth of an employee’s salary to replace that person, which means that for a position paying $50,000 a year, your replacement costs will generally run over $10,000. Furthermore, this cost estimate is only an average; replacing more specialized employees can often run into six figures! One Catalyst estimate states that turnover-related costs amount to 12 percent of pre-tax income for a typical company; and these figures don’t begin to describe the internal stress created when someone quits, or the hit your brand can take if a disgruntled departing worker shares their displeasure on social media.

From the employee point of view, it’s important to realize that in 2015, almost 25 percent of American workers left their jobs voluntarily. Moreover, nearly 37 percent stated that they were currently thinking of quitting, even though they hadn’t made the move yet. The root of employee attrition originates in a lack of engagement, so the best approach to protect your company from high employee turnover is to focus on employee engagement. However, despite these alarming figures, nearly 1 in 5 executives still don’t measure their employees’ engagement in any way.

Start at the beginning

Creating a sense of engagement and belonging in your staff begins on the very first day. One-third of all employees know within the first week at a new job whether they will stay with the company for the long term. With this in mind, it is important to focus on the quality and structure of your onboarding process. Your onboarding process should be built with employee retention as one of its primary objectives. The mission and purpose of your organization should be clearly communicated from day one so that your new hires can envision your company as the right fit for their career in the long run.

Build team relationships

Assigning a mentor to new employees helps them integrate into the work culture and feel more welcomed by other team members. The mentor will naturally take an interest in the person to whom they are assigned, and should feel invested in making sure the new employee transitions into their role smoothly. An important thing to remember is that formal mentoring is only a part of the senior employee’s job. They also need to make introductions, share practical knowledge, and help the new employee to feel welcomed as a valued part of the team.

Make room for personal work styles

Providing enough flexibility to allow for various work styles and schedules is also becoming increasingly important to organizations’ employee retention efforts. If you have employees who have expressed an interest in working a slightly adjusted schedule, allowing them to shift their start time a few hours earlier or later builds loyalty and goodwill by letting them know you trust them to enough to be flexible. Harvard Business Review cites an experiment in which half the workers at a travel website were allowed to choose whether they’d like to work from home. After a nine-month trial period, the company found that workers in the at-home group quit at half the rate of those who remained at the office. Furthermore, productivity in the at-home contingent had increased by 13.5 percent. Not every employee prefers to work remotely, but facilitating that opportunity will build your brand’s reputation as being a responsive, caring employer.

Help your employees reach toward the future

Providing your staff with training and development opportunities is also an essential part of any retention strategy. This may seem counter-intuitive if you think that you’re just spending money training your staff for their next career move. But as a matter of fact, training has been statistically linked to retention, and HR consultants point out that their experience bears out these figures. Offering your staff the chance to increase their skills is a form of succession planning: By nurturing your company’s top performers you ensure a home-grown stable of future leaders. It also broadens the extent of your own in-house expertise, potentially saving you money by filling existing gaps in skills. Finally, the challenge of and rewards of learning new skills increase employees satisfaction and actually slows employee turnover.

Engage employees through recognition

Recognizing your employees for the contributions they make is another essential element in any program to increase retention. This basic management truism is all too easy to set aside when the pressure is turned up for higher productivity — but the price of ignoring employee recognition is far too high to pay. In a SHRM survey of workers who had quit in the first six months of a job, 38 percent said that they might have stayed if they were “recognized for my unique contributions,” or if they received more attention from coworkers and managers, or if they had simply been offered a friendly smile.

The solutions to employee turnover are some of the same actions that will strengthen every aspect of your business. When you make internal changes that bring your staff a greater sense of well-being and a feeling of being supported, you’ll not only retain them but also attract top talent and deliver better products and services as a result. To learn more, download our white paper on uniting your workforce with a positive company culture.

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How to Spot Who’s Going to Quit Next

Most of your company’s expenses are unavoidable, but employee attrition is one of the costs that you can have significant control over. Employee attrition can cost six to nine months’ worth of the departing worker’s salary, so it’s in your best interests to find ways to address employee attrition head-on. Of course it’s necessary to create a culture in your organization that makes people want to stay — but it’s equally important to be able to recognize which employee is planning to quit next. Research into employees quitting provides some actionable insights:

Demographics most likely to quit

Over half of employees who leave their jobs do so within the first year, according to a study by Equifax. This statistic indicates that the early phases of your new hires’ careers are the most sensitive and that you should pay extra close attention to new hires who show continuing signs of disengagement at the workplace. To this end, it is important to focus your onboarding program on how to engage employees as quickly as possible to avoid high turnover. It’s also helpful to be aware of which industries have the highest percentage of employee turnover. The average turnover rate in 2015 across all industries was 16.7 percent. However, the banking and finance industry saw an 18.6 percent turnover rate, the healthcare industry was at 19 percent, and the hospitality industry topped the list with a whopping 37.6 percent employee churn rate.

Specific traits that mark a quitter

While knowing that your industry tends to have especially high turnover rates can cause you to be more alert to the risks, it also helps to know what specific traits to look for in your employees. Research conducted at Jon M. Huntsman School of Business at Utah State University yielded an actionable set of behaviors that you should be watching for. If employees display at least six of the behaviors listed in the Utah State University study, the likelihood they are planning to quit in the near future reaches 80 percent. Top behaviors listed in the study include:

  • Less focus on the future: Since they know they won’t be around as projects are completed and rolled out, workers planning to quit in coming weeks tend to show markedly less willingness to sign onto long-term projects. They may also pass up opportunities for training and development, and show less interest in advancing to higher positions within the company.
  • Less connection to work: As they begin to withdraw and their engagement level drops, workers planning to leave soon tend to display lowered productivity. They’ll come up with fewer new ideas and suggestions for innovation, and they won’t go beyond the required minimum effort.
  • Less social energy: Employees likely to quit soon begin to retreat from normal socializing at work. They become “more reserved and quiet,” and they also avoid interacting socially with their boss or other managers.

Employee engagement is a reliable indicator. Reviewing the problematic behaviors listed above, it becomes obvious that they all describe a worker who is not engaged. The direct correlation between engagement and retention is further demonstrated by the USU’s list of behaviors that don’t correlate with quitting: If you have an employee who suddenly schedules a lot of doctor’s appointments, shows up at work in a suit, or even leaves a copy of their resume on the copier, you may want to check in with that person — but (contrary to conventional wisdom) those actions don’t necessarily indicate that the worker plans to quit. And, interestingly, these non-problematic behaviors can all occur in a fully engaged worker. Predicting employee attrition, then, becomes a matter of being able to recognize lack of engagement, rather than other less reliable markets.

Developing your action plan

Using employee recognition as an indicator enables you to identify your most loyal employees. These top performers are the ones who are not only engaged in producing high-quality work, but they’re also the ones who reach out to recognize their colleagues and promote an atmosphere of warmth and recognition within your organization. Conversely, once you find out which people are most engaged with their coworkers, you can also more easily become aware of the ones on the opposite end of the spectrum: the employees who are retreating from engagement and showing signs that they might quit.

Recognizing coworkers is a solid sign of engagement

According to a recent Achievers study, it was discovered employees who were about to be promoted sent an average of 3.8 times more recognitions than their coworkers; meaning active recognizers are more likely to be promoted within their organization as opposed to non-active recognizers. Those employees who feel appreciated and engaged tend to reach out to express active recognition of their colleagues are more likely to stay than quit, and they’re also the ones you need to nurture and groom for leadership roles.

Once you identify the members of your staff who are in greatest danger of quitting, you can develop managerial practices to build employee morale and loop the outliers back into a sense of alignment with the company. A desire to be recognized and appreciated for the work that they’re doing is one of the primary reasons that people quit their jobs, and a Forbes survey found 79 percent of employees “don’t feel strongly valued for the work they put in.” That same article stated, “When you take into consideration the high cost of turnover and an increasingly improving job market, these findings ought to get you thinking about your own recognition strategies. How can you expect employees to stay at your organization if they’re not getting the appreciation they deserve?”

Don’t lose top talent and take action immediately by developing the right employee recognition strategy for your business. The more you increase employee recognition, the more you’ll increase employee retention and engagement as a result. To learn more about how you can increase employee retention through a culture of recognition, download our Ultimate Guide to Employee Recognition.

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Why Your Top Talent is Leaving

Forbes and CareerBuilder reveal why your top talent is leaving in 2014

industry_headlines

Have you heard the news? Your top talent is leaving this year—at least, Forbes and CareerBuilder seem to be convinced and have some tips to remedy the problem.

Forbes published an article about how CareerBuilder recently surveyed over 3,000 workers to find out who is most likely to change jobs in 2014, what employees value most from their employer, and most importantly—what it will take to retain them. Read more →