| Companies with high employee turnover rates are | | | | Labor Statistics about thirty percent of full-time |
| losing not only valuable resources but also substantial | | | | employees in the United States have true flexible |
| money. Different studies come up with different | | | | schedules that allow them to balance work and |
| costs, but these range from $7,000 - $9,000 to | | | | private lives. A growing number of employees are |
| replace an hourly low-wage employee and up to | | | | from dual-career couples, have child and/or elder care |
| $45,000 to replace a mid-level salaried employee. | | | | responsibilities, or are baby boomers, and these |
| Some estimates on the cost of replacing the average | | | | factors create a growing demand for flexible work |
| employee are over $125,000. The Saratoga Institute | | | | schedules. Because flexible work arrangements |
| and Hewitt Associates estimate the productivity cost | | | | challenge many traditional assumptions about how, |
| of replacing employees can cost 1 to 2.5 times the | | | | where and when work gets done in many industries, |
| salary of the job opening. | | | | developing and rolling out such a program takes |
| Aside from the actual cost of hiring and training new | | | | careful planning. |
| employees, turnover can also contribute to | | | | TrainingBecause employees involved in ongoing |
| customer-service disruption, declines in morale among | | | | training feel that their employer is interested in them |
| remaining employees, and loss of corporate | | | | doing a better job and cares enough about them to |
| knowledge. Turnover has the highest cost in jobs | | | | make an investment in their development, a direct |
| requiring specialized skills, such as nursing and | | | | link exists between training and employee retention. |
| information technology, and jobs in middle or high | | | | While training has always been considered a means |
| level management. Many companies and organizations | | | | for positive change and increased employee |
| are embracing HR talent management programs that | | | | performance in any business, only recently have HR |
| evaluate the issues of employee retention, and far | | | | experts realized that training is a key tool in |
| too many are not. | | | | employee retention. An employee must have the |
| Is employee retention going to become a major issue | | | | tools, time and training necessary to do their job well |
| for your company? Well, according to the Gallop | | | | - or they will move to an employer who provides |
| organization, 71% of your employees already would | | | | them. |
| consider leaving for a better or more appealing | | | | Performance IncentivesEmployees have a human |
| opportunity. Combine that statistic with the current | | | | need to feel rewarded, recognized and appreciated. |
| positive state of the economy, low unemployment | | | | Sometimes just a thank you or a plaque will do, but |
| rate and flexible work arrangements available, and it | | | | realistically, work is about the money, and almost |
| becomes clear that employees now have more | | | | every individual wants more. I suggest offering |
| choices than ever before. Now, let's add in the fact | | | | performance based bonuses. Surveys show that |
| that over the next few years while 76 million Baby | | | | employees view bonuses more favorably than they |
| Boomers begin to retire, the upcoming Generation X | | | | do raises. Employees have extra incentive to work |
| (ages 25-34) has a population of only 44 million | | | | for something tangible, and bonuses keep other |
| people, and it becomes clear that each year there will | | | | employees from feeling unfairly treated when |
| be fewer people available for work. | | | | someone else gets a raise and they do not. People |
| If your business is highly employee critical, then | | | | understand others getting a reward for a one time |
| employee retention is one of the primary measures | | | | achievement, and know that they had the same |
| of the health of your organization. If you are | | | | opportunity. Commissions and bonuses that are easily |
| currently losing critical staff members, you can safely | | | | calculated on a daily, weekly, or other basis, and |
| bet that other employees are looking as well. And | | | | easily understood, raise motivation for doing a job |
| while few of us would turn down more money, | | | | well and help retain staff. |
| according to most studies, money is not the primary | | | | Clear Directions |
| tool for retaining employees. A few simple steps that | | | | Changing expectations keep employees nervous and |
| companies can take to help retain the employees | | | | make employees feel insecure and unsuccessful. |
| they have and can go a long way in keeping | | | | While job growth is important, the need for a specific |
| employees happy and productive. | | | | framework within which people clearly know what is |
| Employees are people and want what most people | | | | expected from them while they expand their |
| want: flexible work schedules, appreciation, training | | | | horizons is most important. A motivated employee |
| for performance improvement, performance | | | | wants to contribute to work areas outside of his |
| incentives, and clear direction on exactly what is | | | | specific job description. Your best employees, those |
| expected of them. If the company is sincerely | | | | employees you want to retain, seek frequent |
| interested in the employee doing well, usually the | | | | opportunities to learn and advance, but they need |
| employee will do well. | | | | clear directions that fit within the company's vision |
| Flexible SchedulesUp until recently, "flexible work | | | | for that development. |
| arrangements" meant that if you worked late on | | | | Finally, remember that employees are people, so let |
| Wednesday, then you could come in late or leave | | | | them bring their human selves to work, and |
| early Thursday. Now, according to the Bureau of | | | | performance and production will increase. |