Your company worked hard to build a top team, but people keep leaving. Why is talent retention so hard? And how can your organization decrease turnover?
Job Hopping Pays Off
The average American gets a 3% to 5% raise every year. (Investopedia, 2021) However, when someone switches jobs, the average salary increases between 10% to 20%. Therefore, employees who stay in the same job for more than two years get paid 50% less over their lifetime. (Forbes, 2014)These figures make job-hopping look quite attractive.
What Your Business Can Do
You may not be able to hand out annual 10% raises, but you should pay people what they are worth. If you’re not sure how much that is, consider Netflix’s innovative strategy. Former chief talent officer Patty McCord explains Netflix encourages their team members to interview elsewhere. This gives their employees the opportunity to explore the market while the company can gauge going pay rates. Also, keep in mind, retention isn’t all about the money. Many individuals would gladly accept a smaller paycheck in exchange for attractive benefits and perks. These may include items such as a comprehensive healthcare plan, remote work options and flex time.
Employees Want to Stay Challenged
As Simon Sinek points out, “Unless you give motivated people something to believe in, something bigger than their job to work toward, they will motivate themselves to find a new job and you’ll be stuck with whoever’s left.” Your employees want to learn, create and try new things. In fact, according to LinkedIn’s 2018 Workplace Learning Report, 94% of employees say that they would stay at a company longer if it invested in their career development.
What Your Business Can Do
Begin by evaluating professional development opportunities at your organization. Maybe you need to design a program from scratch? Or maybe you should reevaluate your current offerings? Traditional workshops and conferences are helpful, while mentorships, tuition reimbursement, and promotions from within maybe even more impactful.
Finding a New Job Is Easier Than Ever Before
When one of your superstars has a bad day, they can jump online and instantly find hundreds of job openings. And even if they aren’t actively looking, an opportunity may pop up in their inbox or social media feeds. In other words, the competition is ever-present and fierce.
What Your Business Can Do
Assume your employees have constant access to other attractive job possibilities (because they do). Addressing pay and professional development will assist your retention efforts. Yet, ultimately, this may not be enough. Thus, give your employees an overreaching positive experience – fulling work, an amazing culture and a healthy work/life balance. Of course, this is a tall order. But remember, no one said retention was going to be easy.
Are Looking for Ways to Build and Retain a Top Team?
The recruiters at FirstStaff will help you find talented and reliable employees who fit well with your organization. We place light industrial workers, office staff and other professionals in Benton, Arkansas and beyond. Learn more about the advantages of partnering with FirstStaff today!
