Did you know that voluntary turnovers can cost US businesses up to a trillion dollars?
The Bureau of Labor Statistics reported in 2017, the annual turnover rate in the US was 26.3 percent. They said that the cost of replacing one employee can range from one-half to twice the employee’s yearly salary.
Employees leave for many reasons like lack of growth, work-life imbalance or undesirable work environments. Research by Gallup revealed 52 percent of voluntarily exiting employees said their organization could have done something to prevent their departure. If you’re a employer, you might be thinking of how will you make your employees happy to make them stay.
These improvements have proven effective:
Improve the habitat
The physical workplace has a direct impact on employee well-being. A quality workspace design can lead to a less stressful and more productive atmosphere. Forbes reported last January that 87 percent of workers would like their employers to offer ergonomic seating, wellness rooms and healthier lunch options. In particular, 93 percent of those in the tech industry are likely to stay longer at a company that will offer the aforementioned improvements.
On the other hand, it was found that employee disengagement can stem from poor work environments. The most common workplace-related complaints from employees include not being able to concentrate easily, being unable to easily share their ideas, not feeling relaxed, and being unable to move around easily during the day.
A simple refurbishment can go a long way in making your workers stay. Offices like those in Las Vegas can learn more about how they can spruce up their workspaces with better office furniture.
Allow flexible time and remote working
Many choose to leave their current work for logistical reasons. Maybe for some, it takes over two hours and tens of miles just to get to the office. Others may have personal reasons, like having a baby to take care of.
Between 2005 and 2017, there was a 159 percent increase in the number of remote workers in the United States. As of February 13, 2020, 4.7 million employees are working in an outside of office setup.
In a survey, 90 percent of employees said allowing for more flexible work arrangements will increase employee morale. As far as performance is concerned, 85 percent of business owners said productivity increased in their companies because of flexible work arrangements. Also, 50 percent of remote employees said working remotely reduced their sick days. Likewise, 86 percent of employees said a flexible job schedule reduced stress.
Let your employees work remotely, and give flexibility for their start and end times. Let them know their job is defined by the quality of their work, not by when they punch the clock.
Recognize your employees
In a survey published in the Harvard Business Review, 82 percent of employed Americans said they aren’t being recognized regularly for their contributions. Employee recognition doesn’t have to cost money. A simple thank you letter is sometimes all it takes to get the message across.
Here are ideas on how to express your gratitude:
- A heartfelt message, either in person, on the phone, via email, etc.
- Shout-outs on social media sites, company newsletters or conferences
- Gifts like vouchers, movie tickets, flowers, chocolates
- Perks like free parking, free meals, low-cost massages or gym memberships
While losing staff may not always be preventable, there are many things companies can do to address a high churn rate. People are an important resource to a company, and if you constantly lose good people, it might put the future of your company in jeopardy.