Every year, nearly 25 percent of the working population undergoes a job transition. This includes 50 percent of hourly workers who leave their jobs within the first four months and 50 percent of senior hires who make a job change within 18 months.
The Society for Human Resources Professionals (SHRM) estimates that the current attrition rate across all industries is approximately 15 percent and the cost of losing an employee ranges from $25,000 to more than $3 million. In today’s marketplace, close to 40 percent of employers are concerned they will lose top talent in the months ahead, since the economy has stabilized and people are less hesitant to make a move.
Ouch! What’s an employer to do?
Why Talent Leaves
Start by understanding the reasons behind attrition. Do a self-assessment, however painful. If you’re honest and learn to recognize and address the underlying issues, you can improve your company’s retention statistics.
- Employees don’t quit their jobs, they quit their bosses. Often, the attitude and behavior of a person’s immediate supervisor is the number-one reason they resign from their jobs. As an HR leader, it’s up to you to actively listen and respond to employees’ concerns about management.
- Employees don’t quit their jobs, they quit the culture. If an employee doesn’t feel “at home,” chances are they will look for this sense of belonging in a different job. This is particularly true among millennial workers, who are far less hesitant to make career moves.
Hire for Retention
Always be recruiting, regardless of which positions are currently open.Companies that adopt this proactive stance score in the top 20 percent for talent management and realize a 22 percent greater return on their sourcing and hiring investments.
- Build and maintain your recruitment team. Populate it with ambassadors who will sell your organization in the career marketplace. Enlist these superstars when interviewing: Take a 360-degree approach whereby a candidate’s potential peers, colleagues and direct reports, as well as managers, participate. Garner feedback from everyone after interviews are complete.
- Don’t cut corners. The pressure may be intense to fill a position “yesterday.” But while you must keep your hiring process efficient in order to hold the interest of top talent, be sure not to skip any key steps. Vet candidates thoroughly and conduct robust reference checks.
- Keep job descriptions current, accurate and as transparent as possible. This helps ensure consistency between your vision for a position and a candidate’s understanding of the role.
- Create a rich online presence. Start with a compelling career page on your company website. Integrate your social media accounts – including LinkedIn, Facebook and Twitter – with online job sites.
Nurture Your Team
Take good care of your current workforce. Help them grow. If an employee feels they are in a dead-end job, they lose momentum, pride and their sense of ownership in your company. So in addition to recruiting to curb attrition, keep a keen eye on the wants, needs and motivators of your veteran team.
To learn more about effective strategies for employee retention and competitive talent management, contact the recruitment team at WorkSource today!