In the past, the work-place philosophy might have been “just put your head down and get on with your job”, but today’s employees need more from their career and those who don’t feel recognised and valued for their performances are twice as likely to look around for another job. When one considers that the cost of losing an employee is a staggering 33% of their annual salary, it makes good business sense to regularly show your appreciation for your employees’ performance.
A recent report1 has shown that employees who are underappreciated are less likely to stay in a job. According to the report, 21.5% of employees who don’t feel valued when they do great work are looking for new roles, compared to the 12.4% that receive regular affirmation from their managers. Recognition can include formal recognition in the form of end-of-year bonuses tied to performance and ‘years of service awards’ through to small bursts of appreciation from managers on a daily or monthly basis. Recognition can come from any level in the organisation. Workplaces that show high retention rates incorporate peer-to-peer recognition and cross-functional recognition into their communication.
Another important aspect of a company that ensures employees feel valued is the company culture. A company with a clear mission that unites co-workers around a shared cause encourages a bigger emotional investment in the company – and when employees are emotionally invested, they are less likely to leave. In fact, data shows that employees who believe that a company has a higher purpose than just profits are 27% more likely to stay at their companies than those that don’t.
Companies that encourage a work/life balance through flexible hours and realistic goals are far likely to foster a sense of value in their employees than those who ignore this. If employees have their personal needs and lives ignored, they are less inclined to stay with a company. One of the key criteria when it comes to creating a work/life balance in a company is managing your employees’ workloads. Have regular check-ins with your staff to see where their time is being spent and what processes can be streamlined to give them a better balance.
Employees that work for a company that invests in their careers with valuable training and growth opportunities are far more likely to feel valued by the company they are working for. When a company invests in employees and helps them broaden their skillsets, the employees are 20% more likely to stay in their roles and feel loyalty towards the company.
Employee-manager relationships are critical to retention and ensuring employees feel valued. Good managers that can effectively communicate strategies, and keep their employees focussed and motivated, are far more likely to ensure their employees feel valued. Employees who are working without a structure, or defined goals and direction are 16% more likely to leave their companies and look for other roles.
At GG Recruitment we work closely with the companies we recruit for to ensure that retention rates are kept to a minimum by matching prospective employees with the right role in the right company. Our primary goal is to ensure an ideal match between candidate and company to guarantee that long-term value is enjoyed on both sides of the recruitment equation. For more information about our recruitment processes, contact us today.
All figures quoted in this report come from: https://www.tinypulse.com/hubfs/2018%20Employee%20Retention%20Report.pdf