Solutions for Low Retention and Increased Turnover
When searching for a new role, most people seek meaning in their profession. Finding something you are passionate about that will also provide financial resources is the ultimate goal. But along the way, there are bumps and bruises. Sometimes we enter new places of employment and the situation is not what we expected. Or, things change and we decide it’s time for something new.
There are a handful of reasons why people quit their jobs:
• Toxic company culture • Inadequate avenues for feedback • Non-competitive benefits • Company’s lack of strategic direction • Unclear institutional goals • Narrow career development ladder
Some of these sound familiar, right? Unfortunately, we’ve all been there. Any of the above can lead employees to depart earlier than they normally would, and combine more than one, and said employee could be out the door in Year 1 or 2. This is a disastrous scenario for any company.
The Costs
Peoplekeep.com looked into the cost of employee turnover. For hourly employees, the financial burden is roughly $1,500. Moving up into a more technical position the costs ascend to 100% to 150% of the person’s salary. C-suite positions are even greater, leaping to 213% of the employee’s salary.
Employee turnover also decreases productivity. It is estimated that new hires require one to two years to reach the productivity levels of an existing employee. If the departing employee occupies a niche role this can really hinder a company’s development plan. New employees must be trained, master new systems, and bond and begin to work efficiently with co-workers. We know this intuitively from experience, but many employers still seem surprised when a valued employee chooses to leave.
Of the above-mentioned reasons for leaving, the low-hanging fruit for increasing retention and lowering turnover is “non-competitive benefits.” Job-seekers in 2023 have more information at their disposal than at any other time in history. The amount of information one can gather on a company online is staggering. Those that engage in this due diligence will quickly understand how the benefits package of a potential employer measures up to the competition.
The Growing Caregiving Need
Americans are living longer. This is fantastic news. However, longer lives don’t necessarily mean lives free of medical issues. The remaining decade of most folk’s lives involves a medical diagnosis and/or regular treatment. The cost of living for everyone has risen exponentially and more and more people are being required to care for loved ones without any support. In 2021, Rosalynn Carter Institute for Caregivers published a study, which revealed that among employees with caregiving responsibilities:
• 52% lost income due to days missed. • 60% felt their work suffered due to time issues. • 68% felt reticent to take on additional responsibilities due to in-home care needs. • 73% needed to leave work unexpectedly or early.
Companies can address these issues head-on by offering caregiving services to their employees. There is a plethora of evidence around the hard facts of how caring for someone at home can affect retention, turnover, and productivity. But, the other rarely addressed issue is the psychological impact of knowing that your employer is also concerned with this burden that has fallen upon their employee. Employees are people, and people respect and value the companionship of others during times of need. Caregiving services are a benefit worth implementing today.