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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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Using HR Tech to Strengthen vs. Separate Your Company Culture

How many of us have ever been out to dinner and looked around to see that every person at the table is on a mobile device? Or observed a group of young people hanging out “together” while barely lifting their eyes from a screen? When we see technology being used this way (or are guilty of too much screen time ourselves) it can be easy to assume technology is pushing human beings apart.

And while internet addiction is a real thing (as one psychologist put it, we’re “carrying around a portable dopamine pump”) there is little evidence proving that technology as a whole is hurting our ability to communicate or empathize. In fact, when used correctly, it can improve these qualities.

In our personal lives, the proper use of technology can give us greater exposure to different perspectives and ways of expressing ourselves. In the workplace, HR tech can strengthen company culture by providing more avenues to engagement and socializing, while increasing productivity.

Here are five ways you can use HR technology to strengthen your company’s culture:

  1. Make Communication Comfortable (and Fun)

Many HR tech platforms include social feeds that allow employees to chat as a group, in smaller channels, or one-on-one. These channels are constantly adding fun features like emojis, reward badges, and GIFs that make using chat applications similar to how employees communicate with friends outside of work.

Far from making it less likely that employees engage with each other face-to-face, internal social channels enhance communication. They allow employees to connect, collaborate, and share a laugh, even during busy periods. They also create the freedom for employees who are introverted or not comfortable in a live, large group setting to be involved. And they create opportunities for employee recognition, particularly for remote teams.

  1. Create Transparency

Transparency is a bit of a buzzword in the modern workplace. It’s important to company culture because it implies trust, which is the basis of any strong relationship. But transparency can be hard to facilitate. First, leadership and managers across the organization must agree on what transparency means to your company. Next, a company must ensure that transparency is equitable. Is your CMO sharing profitability data with his team while your CTO is failing to share the same with hers?

HR tech can revolutionize the way you approach transparency. You can use social feeds to ensure the same messages are going company-wide, create universal trainings in your learning management system, and democratize access to your company leadership. You can also compile and share data on company culture itself, so employees can monitor progress.

  1. Prove the ROI of Culture Initiatives

When budgets are tight, it’s often employee-focused expenses such as team outings or performance awards that get the boot. These costs have long been considered as “nice-to-haves” that may bring out the smiles, but won’t bring in the revenue.

Using HR tech, you can disprove this line of thinking by tying real analytics to your company’s culture initiatives. After each culture effort, you can track real-time data to see how both performance and engagement have been affected. You can then use that data to discuss the ROI of these initiatives with your leadership. Happy employees impact the bottom line in a couple of ways. First, they are more productive. Second, they are less likely to leave (or even be absent) which means less money needs to be spent recruiting, hiring, and training replacements.

  1. Increase Benefit Engagement

HR teams spend vast quantities of time researching and implementing employee benefits that they believe will strengthen company culture. However, many employees aren’t taking advantage of those benefits from employer 401k matching to health and wellness to time off.

Often, lack of engagement with benefits is due to a lack of knowledge — the options, setup, or fine print are confusing; vacation days aren’t properly tracked; the right channels don’t exist to answer questions. HR tech can make benefits more approachable upfront and manageable in the long-term. You can use them to house benefits training opportunities, to make set-up simple, and to make it easy for employees to monitor their own usage. You can also automate reminders to both employees and managers, so that everyone knows, for example, when you need to push someone to take a vacation day.

  1. Revamp Employee Recognition

In our high-speed lives, it can be difficult to find time for “niceties” like employee recognition. And with only so much bandwidth available to focus on their teams, managers often turn their attention to employees who need extra support to succeed, assuming their top-performers are just fine on their own. While those people may be independent operators, it’s still vital that they’re acknowledged for their work. Recognition for a job well done is a huge component of employee satisfaction. In fact, 93% of employees hope to be recognized at least quarterly, if not more.

HR tech can automate both the reminders for and the process of recognizing employees. It can also track these efforts so you know if some employees are being accidently left out.

HR tech is no longer just about payroll and performance management, it’s about people. When you shift your thinking of HR tech as a help, rather than a hindrance, to communication and connectivity, you’ll see your company culture shift as well.

To learn more about the evolution of HR technology, check out Achievers’ blog post A Brief History and Future of HR Technology.

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About the Author
Taylor Burke is a contributor for TechnologyAdvice.com. She’s passionate about great company cultures. When she’s not in front of her screen, you can find Taylor reading, cooking, running, or hanging with her dog—but rarely all four at once. Connect with her on LinkedIn.