Employee retention is an important topic because companies know that the real cost of losing an employee can range from tens of thousands of dollars to twice a position’s salary.
Why does losing an employee cost a company so much?
Many factors play a part in determining costs, and they can vary depending on industry and types of position, but the most common, according to Josh Bersin of Bersin by Deloitte, include:
- The cost of hiring
- The cost of onboarding
- Lost productivity
- Declining engagement
- Less effective customer service and increased errors
Another major concern with losing valuable employees is the difficulty companies have in attracting the right talent to begin with.
In a 2015 Brandon Hall Group Talent Shortage/Hiring Practices Study, 64% of companies surveyed stated that attracting the right talent was their biggest hiring challenge. For the long term, then, it pays off for a company to look for the best ways to maintain their existing human capital.
So what can an organization do to avoid high turnover and increase job satisfaction? They can look to a 2015 Brandon Hall global survey, which shows the most important factors employees think about when deciding to join and/or stay with an organization. These factors include:
- Opportunity for development or gain experience – 71% of all employees surveyed said this was a critical factor
- Cultural fit - 49%
- Organizational growth and performance - 45%
- Compensation/benefits - 41%
Source: 2015 Brandon Hall Group State of EVP Study
Working for a company that provides learning and development opportunities is the most common factor that employees – and prospective employees – look for in determining the future of their career and loyalty to their employer.
No matter what overriding financial situation your company is facing that is keeping you from investing in your human capital, the fact remains that employees aren’t willing to wait for development opportunities to arise and will look for them elsewhere.
What are the best learning and development modalities?
An organization with leadership in place that prioritizes the development of their employees’ capability will find it easier to attract and retain top talent. How is your organization – and your organization’s leadership – committed to investing in your human capital?
With our Undercover Candidate™ and Undercover Employee™ programs, companies can discover how well they are doing at onboarding, employee relations, and retention. The Undercover Employee Mystery Shop Report™ helps business owners and executives discover if their new-hire onboarding/training processes establish an organizational tone consistent with that of the organization’s mission and vision, measure the training and performance of front-line employees and managers, identify if employees are trained to follow company procedures and compliance practices, and uncovers the true narrative of the organization from the inside out.