Have you ever been so desperate to fill an open position that you rushed through the hiring process as soon as possible? If so, you’re far from alone — recruiters face significant pressure to identify the right candidates and close them quickly so that their organisation can go back to operating at full speed. But do this too often, and you just might be making your job harder.
Employees who ultimately aren’t well-suited to your company are more likely to leave, which has a direct impact on your financial bottom line. On average, the cost of replacing an employee is equivalent to six to nine months’ pay — or even more if they worked in a senior role. Beyond the financial cost, high turnover can be time-consuming, damage your company’s reputation and lower productivity.
If turnover at your company exceeds the average of 15 percent across all industries, or if you’re aiming for a rate even lower than that, it’s time to think about how you can increase retention. Our new eBook, The ROI of Hiring Right, provides effective strategies for smarter hiring so that you can ensure that the employees you hire will stick with your organisation for years to come. Get a sneak peek with the preview of some of the top tips below!
1. Improve Your Compensation & Benefits Package
While salary isn’t always the number one consideration for employees, offering a total compensation package that is less than their market worth makes them feel unappreciated and, therefore, more likely to seek outside opportunities. Use Glassdoor’s Salaries tool to research what other firms are paying for similar positions, and see how they stack up to salaries at your own company. Even if you can’t pay top dollar, you want to make sure that the salary you offer is at least competitive for the market. Otherwise, you may not be attracting the best talent.
Outside of salary, you can also offer additional perks. In fact, this can be even more impactful than higher wages. A Glassdoor survey found that almost 80 percent of employees would prefer an enhanced benefits package over a pay rise. Conducting a benefits audit will give you an idea of whether or not your total compensation package needs to be readjusted. Research which benefits are typical for your sector, and make sure to look at your competitors’ Glassdoor profiles to find out what they offer.
An improved benefits package doesn’t always need to be costly, either. Perks like flexible working hours, parental leave and more paid holiday time can make employees and your finance team happy.
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2. Provide Growth Opportunities
A study by Glassdoor Chief Economist Dr. Andrew Chamberlain found that one of the top three reasons employees leave an organisation is because of a lack of career opportunities and job title stagnation. So if you want your staff to stick around for longer, provide opportunities for career development and growth within your organisation. You may want to offer formal learning opportunities, such as access to online learning platforms or a personal development stipend to be used towards skill-building classes, conferences and certification programmes. Even something as simple as a mentorship programme or hosting regular lunch-and-learns for employees can encourage them to stay with your organisation for longer.
In addition, creating a clear path for growth can also help improve retention. Make sure that even new employees know what the trajectory for their job title is. Define what the roles above their current position are, and exactly what is required to get there. Then, work closely with managers to ensure that they are offering regular feedback that helps their direct reports grow. Highlight these benefits not only internally, but also on your career site, your Glassdoor profile and during interviews.
3. Seek Out Feedback & Act On It
Whether positive or negative, there’s no greater gift that your employees can give you than feedback that helps you improve your organisation. Holding exit interviews is critical to find out why employees are leaving and how you might be able to remedy it. Make sure that exit interviews are held in a safe, non-judgemental environment so that employees feel comfortable being honest with you. Some questions you may want to ask include:
- Why did you begin looking for a new job?
- What ultimately led you to accept the new position?
- What could have been done for you to have remained here?
- If you could change anything about your job or the company, what would it be?
- Did you share your concerns with anyone at the company prior to leaving?
Other ways to identify indicators of turnover include looking for patterns in your company’s Glassdoor reviews and sending out employee engagement surveys.
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Regardless of how you gather feedback, make it clear to your employees that you plan to act on it (and, of course, actually follow through on it). If employees have voiced concerns about their managers, for example, you might want to research how you could create a management training programme at your organisation. Even if your plan isn’t fully fleshed-out yet, letting your staff know that you have heard their concerns and are working on a plan to address them will go a long way towards building good will.
Your turnover rate can either greatly help or hinder your company’s performance, so don’t leave it up to chance. Offering a competitive total rewards package, providing opportunities for career growth and acting upon feedback is a great place to start.