Given the high-cost of employee turnover, many companies struggle to retain top talent, especially for highly-skilled roles. An SHRM study predicts that each time a company replaces a salaried employee, it costs six to nine months’ salary on average. For a manager earning $50,000 per year, that could equate to a cost of between $25,000 and $37,500 in recruiting and training expenses!
Here are four game-changing ways to make employees think thrice before jumping ship.
- Focus on the family. One way to apply Dale Carnegie’s 3rd principle, ‘Arouse in the other person an eager want,’ is to offer perks that improve the quality of life for their families. For example, since 43% of women leave their jobs after they give birth1, Netflix allows mothers and fathers to take unlimited paid time off the year after they have a child. For not-as-new parents, Campbell Soup hosts on-site kindergarten and an after school program for employees’ children ages six to twelve.
- Claim vacations as victory. Employees easily become fatigued after working long hours—day after day, week after week. “What is the answer to this fatigue” Dale Carnegie said to, “Relax! Relax! Relax!” Some employees forgo vacations because they fear falling behind on their work, however 91% of business leaders surveyed believe their employees return from vacation recharged and ready to work more effectively, so encouraging employees to take time off is a win-win proposition.2 Moreover, science agrees that it’s critical for the brain to rest and often leads to more creative solutions. Perhaps that’s why HubSpot gives employees unlimited vacation time and actually requires them to take at least two weeks off per year.
- Provide learning opportunities. Employees yearn to learn and those presented with opportunities to grow their skill set are more likely to be not only engaged, but committed to an organization. According to Gallup study, employees who have worked at a company for less than three years, compared to those employed with a company for ten or more years, strongly agreed that they were given opportunities to learn and grow.
Mentorship and tuition reimbursement programs, and succession planning coupled with employee career goals, are great ways to encourage employee growth within the organization—and maximize retention rates. For example, Dai-Ichi Life Insurance offers a clear path for advancement. They give each one of their employees training and mentoring to reach their next career level, with the hope that people can accomplish all of their career aspirations at Dai-Ichi.
- Hone in on health. When Glassdoor surveyed employees, 79% said that they prefer new or additional benefits to a pay increase, and 40% said that they value health care, e.g. medical and dental insurance, wellness programs, etc. more than a pay raise. Which wellness programs could your organization offer employees based on available budget? Perhaps an allowance for a monthly health club membership or hosting an on-site work-out facility. For example, CamelBak’s ‘Bak to Health’ program offers employees healthy snack stations, worksite massages and fitness events.