As we find ourselves moving to the second half of 2022, we are seeing new trends in many areas of our lives. The housing market is slowing down, interest rates are going up and there are help wanted signs all over town. All of these trends may be affecting you individually in one way or another but specifically the last trend means that as an HR director or coordinator, your job is that much more difficult and time consuming. We know that once you’ve spent countless hours and resources on finding the right employee for the job, the next concern is that because statistically the first 90-180 days are when new employees quit their jobs and first year turnaround is at an all-time high you will spend much of your time and resources on recruiting and hiring. According to a study by the 2021 Work Institute Retention Report, most organizations identify first year turnover as one of its most pressing concerns especially in the healthcare field where costs of employee acquisition and training are high. First year departures hit a four year low in 2020 at 33.7%. This is an 11% reduction from 2019.
While there are many different reasons for this statistic, there are some things that have shown can increase the chances of higher retention rates within your business. Validation and recognition of accomplishments within the workplace create a sense of community and belonging which leads to committed employees who continue to bring positive impacts to your organization. However, according to Quantum Workplace, Only 49% of exiting employees said they felt valued by their leaders.
High retention rates can lead to all kinds of great new trends in your business, like maximizing profits and building great culture, but in contrast, low retention rates impact company motivation, productivity, and performance in a negative way. It is hard to build an engaging and high performing environment with constant turnover.
SHRM estimates that it costs $20-30K in recruiting and training expenses to replace a manager making $40K. On average an employee leaving will cost a company 33% of their annual salary. Taking the time to recruit and train is not an easy job!
What are some things that you can do in your company to help increase the chances of higher retention rates within your business, thereby saving you countless hours of time and resources?
Make your onboarding experience exceptional by having a warm welcome for new employees which will foster relationships from day one. This can make a huge difference during those first few more difficult months as employees learn a new company culture and form new working relationships. This is where a well thought out and intentional “Welcome Gift” could serve your company well. Some company swag, some local treats, an office desk gift like a reusable travel mug or a plant, to mention a few ideas.
No matter what size your business is, it is so important for company growth and sustainability, as well as your sense of community and culture, to keep your best talent! There are many ways that you can introduce new ideas into your business that will help retain your greatest assets. Perks and incentives, rewards and acknowledgement, recognition of milestones as well as wellness offerings. Recognizing your employees for their good work will in turn create more good work and an environment where they feel like they belong.
Contact us today to learn more about our Employee Gifting Programs and how we can help your business thrive!
I love this quote from researcher and author Brene Brown about fitting in versus belonging.
“Fitting in is about assessing a situation and becoming who you need to be to be accepted. Belonging, on the other hand, doesn't require us to change who we are; it requires us to be who we are.”
She defines belonging as “being part of something bigger but also having the courage to stand alone, and to belong to yourself above all else.” In that case, belonging is actually the opposite of fitting in! Fitting in means that we are changing ourselves to make other people like us.
So essentially, creating an environment where your employees feel like they belong, which can be fostered within an organization by recognition, encouragement, rewards and incentives, will have long-term success for retention within your company. This is about recognizing employees for who they are and how they are using their gift and talents withing your organization. Creating an environment and culture of belonging will be something we will all benefit from within our communities and businesses.