Posts

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.

Download Report Red CTA Button

 

 

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

 

The Power Behind Engagement

Top Four Benefits of Employee Engagement

People are always complaining about their jobs; whether it’s a boss who drives you up the wall, work that bores you to tears or even the nagging suspicion that you’re being underpaid, each unhappy employee has their own reasons for dreading a Monday morning. But when all this unhappiness and discontent gets added up, it turns out it’s having a profound impact on economies everywhere: we’re in the midst of a global employee engagement crisis, with just 13% of employees worldwide engaged with their jobs.

So what exactly does this mean? An easy way to think about employee engagement is to look at your existing staff. Engaged staff are often your best performing employees – they’re efficient, motivated, understand their role and tackle it to the best of their ability. Naturally, we think all employees will be like that when we hire them – otherwise, why bother?

During job interviews, most candidates are very enthusiastic about the job on offer and if you hire them, it’s normally this enthused and engaged person that you actually want working for you. Yet if you find yourself looking at that same excited candidate a year into the job and seeing that they’re unmotivated, checked out and unhappy, it’s clear that they’ve become disengaged. If that’s the case with many of your employees, you might have a problem brewing.

employee engagement table

It doesn’t matter if your business is a tiny start-up or huge multinational corporation – disengaged staff can run it to the ground. As employee engagement drops off, business owners find that deadlines start getting missed, staff are constantly off sick and employees start leaving the business in droves. Work slows down to a crawl, leaving engaged staff to pick up the slack and heightening their stress levels (possibly leading to them hating their jobs too!)

Luckily, by focusing on employee engagement and happiness, you can revive even the most lifeless of workforces. Read on to find out about the top benefits of employee engagement, along with some tips on how to improve it throughout your business.

1. Cost-Savings

Disengaged staff are slowly draining the life out of your business. In the UK, employee disengagement is costing businesses around £340 billion every single year in lost productivity, while in the USA Gallup estimates this figure rises as high as $550 billion.

It’s easy to see how – if you’re paying someone to do a job and they’ve only put in half the effort necessary, they’ll still get paid even if you don’t get the results you need. As for very disengaged employees (often easily identified by their miserable and disruptive attitudes), you may as well be giving money away. Employee disengagement can easily decimate the return on investment on salaries.

On the other hand, engaged employees will improve your profitability and drive revenue. In fact, workforce opinion surveys show that highly engaged employees can boost business performance by 30%. This is because engaged employees are emotionally committed to their company, its values and its goals. They want the business to do well and will do their best to help it succeed. The hard numbers prove this too – companies with engaged employees outperform those without by 202%.

Luckily, there are ways you can help to foster this sort of commitment. For instance, people who are bored to death at their jobs are unlikely to care about it much, whereas 78% of employees who say their companies encourage creativity and innovation are committed to their employer. It’s easy for businesses to get into a “this is how we’ve always done it” rut and resist change, but data like this shows that this attitude is detrimental to employee engagement. Instead, actively encourage employees to innovate and explore new ways to do things. They’ll enjoy their jobs more, be more committed and help to power your business forwards.

2. Lower Turnover

Did you know that whenever a staff member leaves, it can cost 33% of their salary to replace them? Hiring recruiters is expensive, but even if you look for someone independently you’re going to need to spend valuable time and money on advertising the position, and screening and interviewing candidates. And that’s not the end of the problem – it’s unlikely a new person will be as comfortable in the role as their predecessor – they’ll require training and time to acclimatize to their new job. In fact, a new employee can take up to 2 full years to reach the same level of productivity as an existing staff member. In the vast majority of circumstances, that’s going to mean some degree of lost productivity.

It’s clearly in a business’ best interests to retain as many of their staff as possible, but with widespread disengagement becoming more and more of a problem, employees are more likely to leave their jobs than ever before. A job for life has become a thing of the past. Estimates vary, but research suggests that as many as 51% of employees were looking to leave their jobs in 2017. And for those who are worried about employees being poached by recruiters and competitors, you might have reason to be paranoid – 81% of employees would consider leaving their current role for the right offer.

On the other hand, a marker of engaged staff is company loyalty. Highly engaged staff are 87% less likely to leave an organisation than less engaged staff. So if you want to reduce staff turnover, it’s worthwhile to take a look at exactly what’s ruining engagement and driving people to leave:

With this in mind, who you hire as a manager and the way you train them is absolutely vital for employee engagement. Audit your existing managers to ensure that they’re fit to lead, and be selective when hiring new ones. An effective manager prioritizes supporting their staff, leaving employees feeling far less disenchanted with their jobs. Furthermore, by implementing company-wide recognition programs, staff will feel more appreciated and motivated to work (rather than just motivated to find a new job).

3. More Productive Employees

As Albert Einstein once said, “The best creative work is never done when one is unhappy.” This remains true in the modern workplace, with overall productivity increasing by 20-25% when employees are engaged.

A big factor in reducing productivity and engagement is work overload and excessive stress. Some managers think that by setting more work and piling the pressure on, they’ll get better results. If you’ve ever felt overwhelmed at work, you probably know that the opposite is true:

It’s clear that stress is not an effective motivator. Instead, take a positive and constructive approach to each employee’s work to ensure that workloads are manageable. Implement effective and personalized feedback and communication structures that allow employees to raise any problems they’re having in a non-judgmental setting.

4. Happier Customers

Happy employees create happy and satisfied customers, and the numbers prove it: companies with a formalized employee engagement program enjoy 233% greater customer loyalty. It makes sense, really – if you’re unhappy at work, the last thing you want to do is have a chirpy, helpful conversation with a customer.

It’s worth noting that part of the reason for this is that engaged employees are often well-trained employees. Far too often, companies neglect thorough training programs in favor of ad-hoc and informal “on-the-job” style training.  This sort of training often delivers inconsistent results, with employees feeling they lack the skills and knowledge to perform their role properly: 28% of employees feel they’d be more productive with better training.

Meanwhile, employees who have received comprehensive training deliver superior customer service and achieve better results for their company. For salespeople, formal and dynamic coaching can improve their win rates by 28%. Furthermore, a lack of training frustrates employees and gives the impression there’s little room for development in their current role. Indeed, ongoing employee development programs beyond initial training periods are absolutely crucial; in a survey by CV Library, 31% of respondents cited a lack of development opportunities as the top reason for wanting to quit their job. If you want engaged employees, you need to invest in their future. After all, you stand to benefit too!

The Bottom Line: Employee Engagement is Worth the Investment

At the end of the day, your employees are more valuable and important to your business than any other asset. People spend a third of their lives at work, and it’s in your best interests to make sure they’re not miserable that entire time.

Management shouldn’t be about forcing as much work as possible out of employees at any cost. You want employees that are happy at work & want their company to succeed, rather than someone who’s looking for a quick exit because they’re unhappy.  By prioritizing employee engagement, you can enjoy all the above benefits: greater profits, lower turnover, more productive employees & happier customers…It really is a win-win situation!

To learn more about the importance of employee engagement, take a look at Achievers white paper The True Cost of Employee Disengagement.

Download White Paper Red CTA Button

 

 

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

About the Author
Becca Armstrong Becca Armstrong is a content writer for MadMax Adventures, a purpose build outdoor activity center near Edinburgh, Scotland. They run corporate away-days for businesses that want to improve organisational performance by developing more cohesive teams, rewarding high performance or building relationships with valued customers.

 

 

 

 

Build an Engaging Office Culture

4 Steps: How to Build an Engagement-Driven Office Culture

The importance of employee recognition and engagement cannot be overstated. Companies everywhere are shelling out billions every year for HR programs designed to enhance their office culture and improve employee productivity. Yet, according to Gallup’s 15-year study, the percentage of American workers that are “actively engaged” at the workplace remains fairly stagnant, with an average of just around 32%.

Gallup StudySource: Gallup

This begs the question: why are some employee engagement programs working while others aren’t?

Designing an engaging office culture requires more than just planning birthday parties or patting a worker on the back for a job well done. Engagement strategies can’t be forced; they need to be implemented carefully and encouraged in order to make an impact.

So what should you do to get your workforce more involved?

If you’re looking to build an engagement-driven office culture, check out these four common traits of successful culture initiatives.

  1. It All Starts with Leadership

Teams look to their leaders to set examples of proper behavior. The effect management has on employee engagement and motivation is astounding. According to Gallup’s State of the American Manager Report, leadership has the strongest impact on employee engagement levels in a workplace. Management is responsible for 70% of the variation in employee engagement levels, and workers who had proactively engaged managers were nearly 60% more likely to be engaged themselves.

There is no denying that managers are largely responsible for the office culture of their organization, and therefore, it is up to them to make the necessary changes for improvement and become employee engagement champions. When they strengthen their leadership practices and become more hands-on, teams will likely follow suit.

One practice that leaders must absolutely do away with is abusing company talent in any way, shape, or form. Only about 20% of office workers feel that management motivates them to do their best. Mismanagement, poor job design, or unfulfilled expectations are some of the leading causes of employee disengagement. Many workers feel that managers misuse their skills in the office by not providing opportunities to use their key skills. Underutilization or overworking employees are both major mistakes that can cause frustration, disengagement, and eventually, higher turnover rates.

Leaders with poor communication skills, micromanaging tendencies, or other negative traits can quickly discourage employees and create negative behavior among the team. In order to push for a more engaged environment, leadership must first establish a set standards and examples for others to follow.

  1. Focus on Culture Fit from the Start

We all have a desire to fit in with our peers, and it can be very frustrating and disheartening to new hires who just don’t quite mesh with the new company culture. In fact, IBM’s study found that 20% of workers left a position because they did not fit in with the company culture.

IBM Study Source: IBM

Culture fit is critical to employee engagement and happiness, especially when it comes to new hires. By focusing more on culture fit from the very beginning during the recruiting process, employers will find it easier to boost employee engagement levels while simultaneously decreasing turnover and increasing retention.

HR technology plays a huge role in employee engagement, and it can simplify the tedious process of finding new talent that are great culture fits. If you really want to be more accurate at finding employees that fit your culture, you can incorporate more data-driven insights into your hiring process. For example, there are certain HR tech platforms out there that can track applicant’s personality traits, problem solving abilities, and even professional values.

  1. Get Everyone Involved in Team Decisions

When you think of companies with great employee engagement programs, one that probably pops into mind is Southwest. The low-fare airline has really set the bar for employee enthusiasm and satisfaction levels by finding new ways to get the team involved with the company. When the business decided it was time to redesign company uniforms in 2016, they allowed employees to select the colors, fabrics, and details. All employees were then able to vote for a final decision.

The airline’s founder, Herb Kelleher, understands the importance of building a business that values everyone’s opinions and participation.

The things you can’t buy are dedication, devotion, loyalty – the feeling that you are participating in a crusade.” – Kelleher

Collecting honest feedback and suggestions is the key to building an office culture of innovation in which everyone can feel open to participate. An engaged employee often feels connected to their organization because they understand the unique role they play in its success.

  1. Encourage Interests Outside of the Office

69% of the healthiest and happiest organizations in the country offer programs for professional skill development, proving that a little extra motivation can make all the difference. Encouraging employees to work on things they are passionate about not only provides satisfaction, but also helps them achieve their fullest potential.

Innovative workplaces that encourage employees to get involved with passion projects will build an office culture that thrives. Google is famously known for encouraging employees to pitch their own business ideas and even pursue personal projects to fuel innovation and engagement.

Finding ways to support non-profits or good causes is more than just a nice thing that businesses can do. Fortune reported that up to 59% of respondents to a survey agreed that they would prefer to work for a company which supported a charitable organization over one that didn’t back any, and many were more likely to buy products from such businesses as well. More and more businesses are urging their employees to get involved with charities. Tom’s of Maine is a great example – they require employees to spend 5% of their paid work time volunteering.

Employee engagement shouldn’t just run from Monday to Friday, 9 to 5. It must be practiced beyond the office, too. Keeping everyone inspired to develop, grow, and improve, even after they’ve clocked out, can help everyone in the business aspire to be something better.

Over to You

Businesses that prioritize employee engagement will create more enjoyable office cultures for everyone. Leaders must set the standards, but it is also important to build a strong team from the bottom up. Getting every single person involved by listening to their opinions and encouraging personal interests can help keep the momentum going.

Building an amazing company culture takes time, but the rewards are well worth the wait!

To learn more about the importance of strong culture, check out this white paper on The True Cost of Disengagement

Download White Paper Red CTA Button

 

 

Start building an engagement-driven culture with Achievers and Limeade. Watch this short video to see the partnership in action.

Learn More Red CTA Button

 

 

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

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.

 

Shocking HR Stats

13 Scary Employee Engagement and Recognition Stats That Will Spook You This Halloween

Are you haunted by worries that your best people might quit right before a key deadline? Does lack of team alignment keep you awake at night? Don’t let the tentacles of leadership doubt creep into your brain during hours when you should be rejuvenating. Read through these thirteen hair-raising employee engagement and recognition statistics below and banish any lurking shadows from your company culture.

1. Workers Are Still Rewarded Just for Existing

In a scary throwback to the mid-twentieth century, 87 percent of employee recognition programs center on how long the person has been at the company. While it’s true that minimizing turnover is helpful, nobody comes to work every day because of recognition they’ll be awarded in some future year.

2. Frequent Recognition Gets Overlooked

We know, your life as a manager gets hectic, and you may assume employees can read your mind when you don’t express the appreciation you feel. Pro Tip: They can’t. A Gallup survey finds that only 1 in 3 workers strongly agree that they have been praised or recognized within the past week for doing good work.

3. Most Workers Are Not Engaged

According to Gallup’s 2017 State of the American Workforce report, 51 percent of employees state that they are not engaged in their jobs, which means they’re likely keeping an eye open for a new job. That’s a scary thought, isn’t it? And don’t even think about the distracted workers doing jobs that have a direct bearing on other people’s health and safety.

4. Leaders Are Falling Down on the Job

Gallup provides some truly alarming figures related to the failure of leadership in today’s companies: Only 15 percent of employees “strongly agree” that their management gives them confidence about the future of the company, and only 13 percent state that the company’s leaders communicate effectively throughout the organization.

5. Actively Disengaged Workers: A Problem Waiting to Happen

The number of “actively disengaged” workers, at 24 percent, is nearly double the 13 percent of workers who say they are actively engaged. This can be expensive to your business, as Gallup points out that each instance of employee turnover costs your company an average of 1.5 times the employees’ salary.

6. Recognize Them or Lose Them

Research published in Human Resources Today finds that “the number one reason why people leave jobs is limited recognition and praise.” This is a simple statistic, easy to remember, that will help you keep your talented workers on board for the longer term.

7. Criticism Impairs Thinking

You may think constructive criticism will elicit star performances, but neuroscientists disagree. In fact, criticism activates higher levels of the hormone cortisol, which researchers say “shuts down the thinking center of our brain.” Praise, on the other hand, stimulates the basal ganglia to release pleasure hormones dopamine and oxytocin, which improve performance and attention levels.

8. Lack of Recognition Interferes with Performance

Do employees who aren’t praised work harder, in hopes of eventually being appreciated? Harvard Business Review says “No.” Their research points out that 40 percent of American workers say they would put more effort into their jobs if their employer recognized them more often.

9. Don’t Be Part of This Statistic

The Harvard Business Review study cited above also found that the average employee in their survey reported that it had been 50 days since they last felt recognized for anything they did at work. What number would your average staff person mention, if a surveyor were to ask this question?

10. Millennials Can Slip Away

A recent Deloitte survey found that 2 out of every 3 millennials expect to leave their current job by 2020. One major reason for this restlessness is that this generation feels their skills are not recognized. Only 28 percent of respondents stated that their organization is currently making full use of their skills. To keep your younger workers engaged, you need to recognize their efforts by offering development opportunities.

11. Millennial Need for Flexibility Is Overlooked

Chances are good that the millennials working for you want more flexibility. Eighty-eight percent of younger workers want more schedule flexing authority, while 75 percent want the opportunity to work for home. Meanwhile, only 43 percent of these workers are allowed to work from other locations… so it’s a good bet that some of your staff are surfing the web looking for more adaptable jobs

12. It’s Up to You

Management accounts for 70 percent of the variance in engagement scores. That’s both good and bad news. It means you have a huge influence when it comes to upping your employee engagement scores, but it also means that no other techniques for increasing engagement will be successful if you ignore your role in the solution.

13. Don’t Be Overconfident

You’ve just read a dozen statistics indicating just how big the room for improvement is. Here’s one last warning to take with you: 89 percent of senior managers feel that their company is actually very good at recognizing their workers. This means they probably won’t change. Don’t be part of that overconfident group.

The figures above come from a range of sources, but they all deliver one single message: Rewarding and recognizing your employees is a no-brainer. You work hard on all kinds of complex tasks in order to bring success and sustainability to your company. Don’t overlook the most obvious — and simple — building block of workforce loyalty: prompt, varied employee appreciation.

For more insight on the importance of recognition in the workplace, check out Achievers’ eBook, Recognition Culture: The MVP of Employee Experience.

Download EBook Red CTA Button

 

 

Maybe employees don’t leave managers, after all

hr_trends_and_analyst_findingsFor years, it’s been common knowledge that employees leave managers, not companies. But a new infographic from Glassdoor disagrees: according to their research, only 8 percent of employees attribute their departure to their managers. Far more common reasons were lack of career growth (33 percent), salary and compensation (27 percent), company culture (15 percent), work/life balance (14 percent), work environment (12 percent), and overall company performance (11 percent).

So why does conventional wisdom maintain that managers are the cause? The most-cited study on manager-driven turnover is the 1999 book, First, Break All the Rules: What the World’s Greatest Managers Do Differently, which is based on 25 years of research by the Gallup Organization. But that report is 14 years old now; surely there’s more recent information than that?

Read more →