With competition for workers in many sectors fierce and the costs of recruiting and replacing good employees growing, it makes sense for organisations to put more effort into retention. Engagement and retention are one of the top concerns for 78% of today’s business leaders, according to Deloitte. Employee engagement solutions company TINYpulse researched what really drives attrition, and recently published their Employee Retention Report.
The report surveyed 400 full-time employees in the US over two weeks in July 2015 and analysed the data. This is what the top performing organisations do to retain the best employees.
When employees feel managers respect their work and ideas they are 32% less likely to think about looking for a new job – strong support for the adage that employees don’t quit their job; they quit their boss. Additionally, employees reported that they would be 13% more likely to stay if they were satisfied with the organisation’s senior management team.
TINYpulse reports that micromanagement has a big impact on team satisfaction. Those with freedom to choose how they do their jobs are satisfied and more likely to stay. But those who feel micromanaged will most likely be thinking about leaving – 28% more likely. That’s a lot of disengagement.
The next biggest factor in the manager relationship is transparency – there is a very high link between setting clear goals for the team and communicating them clearly and retention – 30%, in fact. Showing respect and appreciation has measurable results when it comes to keeping great employees.
‘Colleagues have a lot of power’, says TINYpulse. High levels of peer respect mean higher levels of retention, so paying attention to the hiring process is critical and hiring people who are great to work with and are a good fit is as important as their skills when deciding whether to make the offer. Those who did not feel respected by their peers were 10% less likely to see a long-term future with the organisation.
TINYpulse’s research showed that workplace culture is not a fluffy issue. Where employees rated the culture of their workplace low, there were 15% more likely to think about leaving. Both the type of culture and how the individual fitted into it mattered, and having a bit of fun on the job, such as at office drinks, sporting events or team volunteering, makes a big difference, as does assigning new employees a mentor or peer buddy who is an ambassador for the workplace culture.
This one was huge – ‘Employees that are tired and burnt out are 31% more likely to think about looking for a new job than their colleagues who feel comfortable with their workload’. The survey points out that burnout is preventable if managers understand its downsides, measure it and take efforts to eliminate it, such as by taking their own paid leave.
Those with access to professional development and skills training, either externally or internally, were 10% more likely to stay with their employer. Millennials were almost unanimous that they would consider changing employers if they did not see opportunities for professional growth with their current employer – a whopping 75% of them. The report points out, though, that the desire for opportunities for growth now applies across workforce generations.
Asking employees where they see themselves in six months’ time, next year, in two years’ time, is not just a good conversation starter; it’s an essential part of a retention strategy. Listen carefully to the answer – and do something about it. If you won’t, a competitor will. Our blog will offer some great ideas about in-house and external skills and development training in the near future.
No initiative – especially one to improve your retention – should begin without a measurement to see how your team feels about the issues, the TINYpulse research report points out. You need to know where you are now, to pinpoint the most troublesome areas that need your attention, and to know how you will measure your success.
Challenge Consulting’s Employee Retention Optimiser has been developed to identify key retention issues and priorities for your organisation; guide improvement strategies at all levels and help you to implement them; and track and monitor improvements. Find out more at Challenge People Services.
