The expenses associated with losing a staff member extend far beyond conducting a talent search. While the direct costs average approximately 20 percent of an employee's annual salary, indirect costs drive that number higher. Lost productivity, diminished team engagement, and expenses associated with training a new hire all contribute to the total cost of turnover.
Smart business leaders are focused on increasing levels of engagement and loyalty among current employees to reduce voluntary turnover rates. These five management techniques for increasing long-term employee loyalty are proven elements of an employee-centric culture, and organizations that integrate these methods into standard business practices have reported significant benefits to their bottom line.
1. Collaborative Teams
The impact of team dynamics on employee loyalty cannot be overstated. Research has shown again and again that there is a direct connection between levels of engagement and levels of satisfaction with the immediate supervisor. In one study, 56 percent of employees who reported that they were very satisfied with their leadership were also engaged in their work. However, 69 percent of those who were unhappy with their leadership were disengaged - a strong signal that turnover is imminent.
Leaders that manage through the use of collaboration rather than relying on top-down direction enjoy higher levels of satisfaction from their team members. This style of management offers employees an opportunity to have their voices heard, and they are able to influence some aspects of their working conditions.
2. Frequent Feedback
Today's workers are accustomed to constant feedback, whether the message is positive or negative. An absence of this sort of communication is a source of dissatisfaction. Confirmation that contributions are being seen - and coaching and encouragement when performance isn't quite up to par - must be frequent and on-going for optimal levels of employee engagement.
Some organizations have incorporated simple feedback tools into their recognition programs that permit any member of the organization to publicly recognize any other employee for a job well-done. Because these informal compliments are not tied to any compensation, the business cost is minimal. However, the positive impact from these feedback forms is illustrated in increased employee loyalty.
3. Flexible Scheduling
The 21st-century workforce is losing enthusiasm for traditional scheduling and office-based jobs. Instead, they are flocking to opportunities that allow them to telecommute, and they are seeking more of a work/life blend than a work/life balance. For example, they are happy to answer emails from home in the evening, provided they have the flexibility to attend their children's soccer games in the afternoon.
Some managers fear that increasing flexibility will lead to lower productivity, but research shows that the opposite is true. Employees who are given flexible scheduling options are more productive, more engaged, and far more loyal to the organization.
4. Formal Recognition
Companies that appear on Best Places to Work lists year after year have implemented formal employee recognition programs that create opportunities for top talent to receive public accolades for significant accomplishments. The recognition serves to drive desired corporate behaviors, and in some cases, such awards are tied to financial incentives. The combination of various recognition tools, including those that are linked to incentives and those that are not, creates a widespread culture of recognition throughout the organization. This is the type of environment that ensures long-term employee loyalty.
5. Training and Development
No matter how engaged employees are in their current roles, there is always a drive to enhance current skills and develop new ones. Organizations that invest in training and development opportunities for staff members enjoy higher-than-average retention rates. Staff members feel valued when the company shows interest in personal growth, and the most innovative organizations offer a variety of options, such as education assistance, online courses, and mentoring programs.
CoreCentive specializes in employee recognition and incentives. Visit us online to learn more about our proven methods for building an enterprise-wide culture of recognition.