No matter what way you fill a role, you may get one, or a few new employees at the end of the recruitment process. But that’s not where the process stops, any business, large or small needs to concentrate on the retention of these new employees.
Lots of firms fail to realise the importance of a well executed and researched retention plan. Not only that, they often forget the financial aspect which emphasises the need for employee retention.
With a better understanding of retention facts, your company can address retention improvement in a more effective manner.
Not retaining an employee can cost more than many companies realise. The costs involved here include everything from processing an employee’s resignation, the advertising and recruiting costs to attract a new employee, orientation and training costs for a new employee, lost productivity from a missing employee until the position is filled, or possibly hiring an agency to fill this role, and lower morale in departments when an employee leaves – which would obviously lead to many being less productive in their day-to-day activities.
In any business, often one of the biggest motivating factors is cost, and cost saving. It’s the same for retention of employees.
Here are the bare cost facts for what percentage of the yearly wage is lost for many positions when an employee is lost:
• Entry level-non skilled worker; 30 – 50%
• Service/Production worker; 40 – 70%
• Skilled Hourly; 75 – 100%
• Clerical/Administrative; 50 – 80%
• Professional ; 75 – 125%
• Technical ; 100 – 150%
• IT Specialist; 200 – 400%
• Supervisor ; 100 – 150%
• Department Manager; 125 – 200%
Research from the Spherion group suggests that 96% of workers say that employers who help them meet family and personal obligations through options like flextime, job-sharing and telecommuting are much more attractive to them than employers who do not offer those options. The employers who offer such programs will be able to attract and retain workers more effectively than those who do not.
These tools can result in higher employee satisfaction and improved retention. According to a Spherion Survey, employers who understand and meet their employees’ needs can expect that 85% of their workers will have greater job satisfaction, 56% increased trust and 43% increased loyalty to their employer.