Should I really be worried about employee retention during economic downturns when unemployment numbers are so high?
It is still a shock to the system when we give presentations to HR professionals and small business owners and ask “what are you doing about retention?” and we get these looks like “retention” why would I need to do anything about retention? And there is always someone in the crowd that announces out loud “we are all just lucky to even HAVE jobs”. Dare we repeat the recent survey results by the Harvard Business review that found 25% of the top performers at companies are saying that they plan to leave their companies within the next year?
Do you find that hard to believe? Better start believing it…it is a reality! We’ve had a number of managers call and report it is already happening to them. To make matters worse, managers feel their hands are tied because their companies are taking the defensive position ”let them quit and try to find another job someplace else”. Guess what? They did…and, the ones leaving WERE the top performers! Can you afford to lose your best employees?
So, to ask again “what are you doing about retention?” Yes, some people may be lucky to have a job, but in other cases YOU are lucky you have them as employees. It’s time to start treating your employees in a manner that shows they are indeed valuable. Your business may not be in the position to reinstate the salary you had to cut, give the raise you put off, or offer the 401k match you eliminated, but can you do some things to improve the work environment? Easy things, such as:
- Providing recognition for sticking with the company during these rough times.
- Sharing the plan of where an employee fits into the big picture going forward.
- Seeking the opinions of employees when it comes to helping the company move forward and grow.
- Setting and sharing some milestones for what it may take before an employee can see an increase in salary again.
- Asking what is important to the employee that keeps him/her at your company.
- Determining if you have the right people managing the employees to keep everyone motivated and excited about being a part of the company going forward.
- Doing things that differentiate between the good employees and the mediocre employees to show that it matters.
Turnover is expensive. It can cost your business as much as 50 – 150% of the annual salary of your lost employee. Can you afford that as your business recovers? What are you doing to manage your employees in the current economy to avoid losing your star performers?
Are daily HR issues interfering with your ability to focus on the strategic matters of your company? Do you find yourself at odds with the directives of the leadership team? Strategic HR, inc. knows how integral human resources is to the health of your organization and can assist you with HR strategy needs. Visit our HR Strategy page to learn how we can assist you with your strategy and help align your goals.