By the Numbers: Employee Turnover, Dissatisfaction, and Retention
In 2018, more than 40 million Americans – 26.9% of the workforce – quit their jobs. For employers, this is a clear sign that employee dissatisfaction is a serious issue.
When and Why Employees Quit
A 2019 iHire survey of the U.S. employees found that 75% wouldn’t stay at a job for more than five years, and nearly 60% were either “somewhat satisfied” or “neither satisfied nor dissatisfied” with their jobs. Additionally, 35% admitted to looking for a new job during work hours. Only 17.9% polled were very happy.
Reasons for job dissatisfaction included low salary, lack of growth or advancement opportunities, negative or toxic work environment, or poor work-life balance. However, 48% of those polled stated they’d be encouraged to stay if their employers offered a raise or bonus, 25.1% would be encouraged to stay if they were offered a better benefits package, and 22.1% would be encouraged by a healthier work-life balance.
Benefits of Employee Engagement
Studies show that businesses in the top 20% of employee engagement enjoy 21% greater profitability, a 41% reduction in absenteeism, and 59% less turnover. They’re also 4.6 times more likely to see employees feel empowered to perform better.
Keys to Building an Effective Employee Retention Strategy
Disengaged employees cost U.S. companies $550 billion every year. Clearly, developing an effective employee retention strategy is worth the investment for employers.
5 Keys to Employee Retention
One of the vital components of employee retention is the implementation of onboarding practices that ensure employees learn what makes the company unique and how their jobs fulfill the company’s mission. It’s also important to understand employee needs by recognizing how they may change over time and through different generations. Additionally, it’s important to maintain a positive employee experience through the development of a nurturing culture, connections that foster productive relationships, and the utilization of employee strengths. A fourth key is to create opportunities for employees through strategic projects and training. Finally, employers can request feedback with the goal of obtaining detailed information on employee attitudes toward work.
5 Tips for Managers
Managers are in direct contact with employees on a regular basis and have a considerable impact on their work experience. To support an organization’s employee retention strategy, managers should actively invest in their team members’ job satisfaction.
How Managers Can Contribute to Employee Satisfaction
One of the ways managers can help cultivate employee satisfaction is by giving them meaningful work early on, which can give managers an opportunity to demonstrate trust in their employees’ abilities. Another managing method is to avoid common onboarding pitfalls like overloading orientation sessions with detailed policy information and preparing a clean workspace. They can also strive to nurture open communication, which helps to ensure employees feel comfortable sharing ideas and they can receive open and honest feedback about their performance. Additionally, they can recognize and reward employee achievements through tangible gifts or perks like additional time off. Finally, managers can pair every employee with a mentor.
5 Tips for Leaders and Executives
Company leaders and executives are responsible for designing company wide programs and initiatives that will have a broad impact on employee satisfaction.
How Leaders Pursue the Vision for Employee Retention
One of the ways leaders can promote employee retention is to offer flexible working arrangements, which could come in the form of allowing employees to choose a compressed workweek or letting them telecommute on certain days of the week. They can also offer employees unique perks such as paid time off for volunteering and catered lunches or negotiating group discounts for expensive purchases. Another way that leaders can promote retention is to celebrate company milestones by sharing meals or going on group excursions with employees. Additionally, leaders can invest in employee training and development by paying their fees and travel for employees attending conferences or industry events. Finally, they can invest in employee well-being by adding healthy foods to break rooms, implementing ergonomic workstations, or offering mental wellness programs to help employees improve stress management skills.
Maintaining an Effective Status Quo
Skilled and talented employees who lack dedication aren’t benefiting the organization as much as they could. Managers and leaders should implement employee retention strategies that recognize the value and contributions of each individual employee. Doing so will improve employee retention and ensure lasting success.