Rising turnover has become a hot topic during the COVID-19 Pandemic. 97% of small businesses say the COVID-19 outbreak played a big role in the high employee turnover. The average cost for replacing a full-time, salaried employee is estimated to be up to a third of their salary, and this figure can be significantly higher for executive-level employees.
Some factors that contribute to turnover cost:
- Low employee morale
- Advertising, interviewing and screening for the new hire
- Lost productivity and delivery time delays
- Revenue loss
- Lost engagement of other employees
What strategies can companies employ to make their employees want to stay? One of the best ways to mitigate employee turnover is to understand why employees leave. Conducting exit interviews can provide valuable information about how to improve your employees’ experience.
Consider questions like these:
- Why are you making a change?
- What was your favorite part of your job?
- Is there anything we could do to change your mind about leaving?
- What are your thoughts about the company culture?
- How would you rate your relationship with your managers?
- How would you rate morale amongst your team?
- Would you refer a friend or client to us?
Use feedback to make changes in the company, particularly if many employees cite conflict with a particular manager as a reason for their exit.
There has been much discussion of the “new normal” that will emerge after the pandemic. Employers are discovering that their employees value different things in their work life than they did pre-pandemic. As the pandemic recedes, some are leaving their jobs for more money—so yes, employers should make sure they offer competitive wages—but many are leaving in search of less tangible benefits: flexibility, work-life balance, and even happiness.
What can employers do to make their employees want to stay?
1. Show appreciation.
Nearly 30% of the workforce feels undervalued and under-appreciated. Something as simple as scheduling regular performance discussions and offering positive feedback can make workers feel valued and supported. Ask managers to emphasize how each employee’s work contributes to company goals. Feelings of belonging can also have a positive impact on employee retention.
2. Offer flexible scheduling and remote work opportunities.
Many workers discovered that they enjoyed working remotely and having more control over their work schedules during the pandemic. The ability to get to a doctor’s appointment, enjoy a workout, and run an errand or two while putting in a full day’s work is a great benefit to offer employees.
3. Improve company culture.
65% of millennials care more about work culture than they care about salary. Companies that create a positive and diverse company culture have productive and loyal employees.
4. Focus on people.
Companies are made up of people, and employees who feel valued and cared for are more likely to stay invested in their work. Consider offering flexible time off programs, to allow employees to refresh and recharge as needed to avoid burnout. Find opportunities for team stretch goals to allow entire teams or even the whole company to win together and celebrate together. Offer to invest in their work development, not just their physical development, too. Create mentorship opportunities for those who show an interest in management, and allow cross-functional learning opportunities for those that are looking for paths into other career tracks. Employees who can see a career path within the company are more likely to remain loyal.
5. Creative perks.
Some of our clients offer free Netflix subscriptions to their employees. Others pay travel expenses or provide free coffee or lunch to show appreciation for employees’ work. Sometimes it’s truly the little things that make employees feel valued—and make them stick around.
Healthy, happy, valued employees who feel like they have a voice in the company are more likely to work hard and remain in their jobs. Moving forward post-pandemic, making employees feel valued is a great way to keep them with the company.
Looking for top-level IT talent in the Los Angeles, Phoenix, or Denver area? Our staff augmentation experts can provide superior candidates to join your team! Connect with our network of top tech talent.