It seems like every week a survey comes out with a new shocking statistic about “the talent exodus” and how all of your employees (well… 84 percent) are looking for a new job. What can you do to keep them from leaving your company? The cost of turnover is high. It can vary widely between 30-150 percent of the yearly salary depending on the position and how you calculate it: cost of vacancy, time to fill, etc. Reducing “churn” is a highly effective way to boost your bottom line.
Hiring the right people to start is key, as is fair compensation and benefits, but below you’ll find some “out of the box” ideas other companies have put in place to reduce turnover (in one example, only 1 hire left in their 10 years history):
5. Creating a dog-friendly workplace: According to a survey by American Pet Products, 1 in 5 companies allow pets in the workplace. It goes on to state that companies that allow pets in the workplace see a lower rate of employee absenteeism, more willingness to work longer hours, and an overall more productive environment. “Dog-friendliness may generate more loyalty for the company as a whole. “ (INC)
4. Referral Hiring: When a current employee recommends a friend for a job at your company, it might be less for the cash bonus and more for the “bonus” of working with someone they like. It’s more likely that the hire will fit in with your company culture and stay with the company for the long run.
3. Gamifying: “Gamification is the process of making non-game things more game-like, such as making a business contest more competitive by adding a leaderboard or achievements. At the U.K.’s Department for Work and Pensions, they created a game to foster innovation and social collaboration and within 18 months there were over 4,500 users. ” (Venturebeat) Gamification introduces an addictive reward system which identifies goals and highlights the employees’ accomplishments (all tenets in reducing turnover).
2. Food: Providing healthy meal options within your office leads to more productivity, inter-office camaraderie, happier and healthier employees, and…surprise…lower employee turnover. When companies, like Google, offer employees gourmet meals, there isn’t much reason to go “off-campus.” Employees spend less time out of the office and your competitors lose the opportunity to take your top talent out to lunch.
1. Telecommuting/Work Flex: Whenever a survey or study is presented about the desire for telecommuting, it’s persistently a top motivator. At People Science, we’ve embraced telecommuting for its many benefits.
Fire Engine RED, a Philadelphia-based company has embraced telecommuting in a different way. Their company is 100 percent virtual; they recruit worldwide for the “perfect candidate” without worrying about their location. The proof in this model is in their turnover: in 10 years only one employee has left, ironically to become a client of the company. (INC)
ROWE: Researchers studied the effects of implementing a Results Only Work Environment on 600 employees at a Best Buy in Minnesota. The study found that ROWE reduced turnover by 45 percent and only 6 percent of participants left the company during the study period versus 11 percent in the control group. Turnover “intentions” were also reduced (ASA)
At People Science, our Recruitment Process partnerships always result in reduced new hire turnover.
- In one example, we were able to reduce new hire turnover from 98 percent to 28 percent within 18 months.
- For another client we reduced new hire turnover from 42 percent to 11 percent in a 12 month period.
- Additionally, our partnerships result in a higher caliber of new employee. A current client has witnessed a 25 percent increase in productivity with the new hires placed in the first 6 months.
If you are interested in learning the true cost of turnover and how you can reduce it, contact us.