Should I Care About Employee Retention?
Yes. Slowly but surely the labor market is recovering. Now more than ever, companies should be focused on attracting and retaining the right employees. Here are four key reasons why companies need an incentive/employee recognition plan.
- Opportunities ARE Available. Do not assume your employees lack other job opportunities or are locked in their current position – because they do! The unemployment rate for college-educated, highly skilled workers is less than 4 percent. Offering perks such as paid time off, on-site childcare, wellness programs, flexible schedules, tuition reimbursement and bonuses can go a long way to engage, motivate and retain employees.
- Looking and Ready to Move. Over the last several years, highly skilled employees have been asked to take on more and more responsibilities – many times without an increase in pay or benefits. According to the Corporate Executive Board, 1 in 4 highly skilled workers is considering leaving their employer compared to 1 out of 10 other workers. In order to retain these valued employees, make sure to send a clear message that they are important and that their hard work is being noticed.
- Employees – Like Elephants – Never Forget. As the labor market improves, employees are proactively looking for new opportunities or contacting recruiters to do the dirty work for them. When deciding to move on professionally, about 50% of that decision is based on how the company has treated them in the past (Corporate Executive Board).
- Nothing Nice to Say? Corporate Executive Board exit surveys of more than 200 companies show that only 1 in 4 departing employees would recommend their previous employer as a good place to work. Having a healthy and flexible employee recognition plan in place could not only minimize the unsatisfied signals departing employees are sending out but could also help maximize your employee retention rate.