6 Stats to Kick-Start Your Employee Retention Strategy
A shrinking candidate pool and increased competition for top-notch talent are driving many companies to boost recruiting efforts. But, doing so without paying equal attention to employee retention is a costly mistake. Companies must adopt a data-driven strategy to maintain a high-quality workforce and compete with other employers. Only then can they identify the right steps to boost employee retention.
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The cost of poor employee retentionBy most estimates, replacing an employee costs companies at least 30% of his or her annual salary. Multiply this by the total number of employees departing each year, and you’ll quickly see how low employee retention puts a massive strain on your bottom line. In addition to the financial consequences, high turnover also has a dramatic impact on employee morale, engagement, and your ability to attract high-quality talent. It can even drive more employees to quit. After all, employees will be unlikely to plan a long-term career at a company where the average tenure is just a year or two, or maybe less. But identifying strategies to improve retention and reduce turnover is easier said than done. The first step is step is to answer a few key questions:
- How much does turnover actually cost?
- How frequently are employees leaving, and what’s driving them to quit?
- What kind of information do candidates look for from prospective employers?
- What are the biggest obstacles to recruiting high-quality talent?