How Engagement Can Reduce Employee Turnover
Employee engagement has everything to do with happiness on the job. Your team members have to love what they do, and they have to really enjoy coming to work. To reduce employee turnover, you have to focus not just on employee satisfaction, but on true engagement. But it’s tough to know which leader training will help you meet those goals. It’s also important to note that it has a huge effect on the company’s bottom line.
Employee turnover is natural, and people naturally move on in their careers, and that’s perfectly normal. The real problem is when high employee turnover starts to become the norm.
Today, we’ll share a few stories, as well as give some statistics on why working to reduce employee turnover is so important. At the end, we’ll share several actionable ways you can engage employees to keep employee retention high and turnover low.
The Effects Of Employee Turnover
Have you been part of an organization were you would think there is a revolving door at the front entrance? You’ve seen it: new hires spend time training, and learning how to work within their areas and the company’s culture, but they leave, either of their own volition or because their productivity is too low to support the company’s goals. More new employees are hired to fill the void they leave, but have difficulty learning the skills, fitting the culture, or being productive enough to satisfy leaders. This cycle can have a whole host of negative effects.
This turnover cycle lowers morale – even for long-time employees. Companies that don’t consider the effect a lost employee has on the rest of the team is doomed to repeat the cycle. High turnover can create a culture of fear, where no one knows how safe their job is. This obviously affects their work, because they spend so much time worrying about their livelihood.
Worry and angst lead to stress and, often, burnout and a falling-out of proper health and wellness habits. Productivity suffers on all fronts, not to mention other health risk factors, such as higher health care premiums/expenses, risk insurance and workers comp claims. Now your CFO is getting stressed!
Turnover drains time, energy and other resources away from more productive activities, as recruiters and the HR team must replace lost team members. Employee turnover taxes the entire organization. Disengagement can become rampant – and if it goes on long enough, people lose all belief in the company’s “why.” What kind of stories are these disengaged and unhappy employees telling the marketplace about your company, your brand and their decisions to buy their products or services?
The Importance of Engagement
There are so many people who are unhappy with their jobs, their bosses and are totally disengaged. Even the employees that are not considered “actively disengaged” are still not fully invested in the outcome of their work. They’re kind of just straddling the fence, and could go either way. This is a great opportunity for employers to bring them over to the “actively engaged” side.
The truth is, the fault is not with the employees, it’s with the company’s leaders. Not all leaders are incompetent of course, but there are many that have trouble getting fully behind employee engagement programs. To reduce employee turnover, your leaders need to understand the importance of engagement.
PriceWaterhouseCoopers says that 9 out of 10 barriers to the success of these types of programs are people-related. It’s fairly well known by now that most people don’t quit their jobs, they quit their bosses. This is so easy to change, all your leaders need to understand is how to improve their skills, to support, motivate, and connect with employees.
Many CFO’s don’t understand that investing in employees provides a huge return on investment in the form of higher profits to the company. Companies with highly engaged workers were able to lower employee turnover by 31% according to research by Bersin. Replacing a lost employee is also far more costly that training and inspiring them while they are on the payroll. Some replacement estimates are as high as double the initial salary of the employee.
Today, companies are finally realizing that employee satisfaction is simply not enough. Employees need to be engaged to be able to perform well. Companies don’t have a choice but to train their leaders to begin appreciating team members. Better leaders reward employees and train them in an intentional effort to reduce turnover.
5 Ways To Reduce Employee Turnover
Here are 5 great ideas to help you reduce employee turnover. As you undertake these efforts, be sure to measure your progress! Putting it simply, it’s about your leaders respecting employees and treating them how you’d expect to be treated.
- First, Provide Regular Feedback – Employees crave feedback, so don’t be shy about giving it to them very frequently. They are starved for it and crave it, especially the millennial employee. Statistics show that 77% of employees are starved for recognition.
- Then, Collect Ideas – Show employees that you value their opinions and listen to them. Ask them to submit ideas that will help the company grow. This one is a win-win for the employer. They get great ideas, while also making employees feel good about themselves.
- Follow up by Investing In Them – Employees want to grow. Invest in their development, by offering to pay for courses that they take, and actively encourage them to learn more about the industry and their job. It will make them a better, smarter worker.
- Create Team Building Activities – There are a lot of great team building activities that you can do (see previous blog posts for 10 great ideas) that you can do to bring everyone closer together, and to make sure that there is a social environment, where everyone gets along. Making employees feel connected to their coworkers is important for employee retention.
- Finally, Surprise Them – Rewards often mean more when it’s a surprise! Random acts of appreciation – even if it’s just a coffee shop gift card – go a long way.
If you aren’t sure how to begin building better leaders that support your efforts to reduce employee turnover, check out this online leadership training, A Better Leader, to provide the skills your leaders need.