Studies on turnover estimate that every time a business replaces a salaried employee, it costs 6 to 9 months' salary on average. For an employee making $40,000 a year, that's $20,000 to $30,000 in recruiting and training expenses. Providing a competitive compensation and benefits package is important, but in today’s market, retention also requires making new hires feel engaged, aligned and connected from Day 1.
With this in mind, we offer three quick tips to think about when bringing people onboard your organization.
1. Promote affiliation with people from the start
SHRM shared the reasons new hires leave so soon included the expected, like lacking in clear guidelines on responsibilities and wanting better training, as well as some less intuitive factors. For instance, 17% said a friendly smile or a helpful co-worker would have made the difference between staying and going, and 12% wanted to be “recognized for their unique contributions.” Employees today, especially millennials, like to connect and collaborate, and that is especially true of millennials, yet the Aberdeen Group found that only 32% of organizations provide opportunities for peer networking. This represents a clear missed opportunity and one that can be easily remedied with a mentoring or “buddy” program.
Conclusion: Providing early opportunities for peer networking and social recognition are critical to retention.
2. Look beyond money to drive desired behaviors
According to a frequently cited Kepner Tregoe study, 40% of employees felt that that increased salaries and financial rewards were ineffective in reducing turnover. Employee behaviors today are driven less by financial incentive and more by aligning their personal values with company goals in order to endow their work with a greater sense of meaning. Meeting these seemingly less-tangible needs can be accomplished through a formal recognition and rewards program, along with frequent manager feedback and opportunities to connect with new team members.
Conclusion: Aligning employees’ personal values with company goals through recognition programs and frequent feedback is more likely to drive successful behavior.
3. Develop an onboarding system that engages quickly
Do you think of employee recognition as something only for employees who have been with the company for some time? More and more leading organizations are realizing that optimizing the workplace for employee retention requires integrating new employees into their recognition programs right from the start. By encouraging participation in an organization’s recognition program from the outset, employers can insure that new hires embrace and contribute to the company’s culture of recognition. To do this, employers can build training on the company’s rewards and recognition platform into employee onboarding programs and by not waiting until the employee has been with the company for an extended period before recognizing desired behaviors.
Ideas for early recognitions include recognizing new hires for how quickly they get up to speed on their new job responsibilities, how well they are connecting with their new co-workers, or how frequently they participate in culture-building activities. In order to reinforce a culture of recognition and achieve ongoing employee engagement as a result, recognitions should be frequent, meaningful and tied to company values. In fact, Gallup recommends at least every seven days.
Conclusion: Engage employees and integrate them into the company’s culture of recognition from day one through recognitions given early and often.
New hires are more likely to decide to stay with your organization when they feel appreciated and welcomed by their peers. Millennials especially, projected to make up more than 50% of the workforce by 2020, embrace peer networking and social recognition. Setting up new hires for success through early participation in a company’s culture of recognition is good for employees and good for the organization.
Learn how to build a culture of recognition by downloading our eBook: Recognition Culture: The MVP of Employee Experience.