The nature of today’s workforce has made it easier for employee turnover rates to increase. With abundant opportunities and resources for employees to find new jobs, and an increase in work-life standards, employers need to put more effort into retaining their employees. They need to create incentives to encourage their employees stay with them. So, why does employee retention even matter?
Why does employee retention matter?
The most obvious benefit of employee retention is that, by keeping current employees, employers can waive the substantial cost of recruitment. It costs around 33% of a worker’s annual salary to hire a replacement. In addition to financial benefits, retaining employees is key to building a strong corporate culture. Ideally, businesses want a smooth workflow where every member of the team knows how to address issues within the company. This smooth workflow is essentially unattainable in a firm where employees frequently come and go.
What can we do to retain employees?
Therefore, employers must provide a work environment in which their employees are incentivized to stay. These benefits often include competitive pay and flexible work options; however, studies have shown that most employees, in fact, value training programs most of all.
Employees want to know that they are on the path for career development. This means that organizations must ensure that the employee is growing while there. Company employees will grow their skillsets, and increase their impact and positive contributions to the company’s common goals. This allows employees to feel simultaneously appreciated and challenged, which increases their satisfaction with their jobs and the company.
How can we design a training program that minimizes employee turnover?
Unlike the standard seminar-style training program, organizations must provide a customized program that reaches its employees individually. The goal is to engage with them on a personal level, and make them feel that they are learning the skills for their own benefit. Remember, these training programs are to accelerate employee satisfaction and performance, and not to merely check off a training requirement on a to-do list.
Companies must incorporate training programs into their employees’ day-to-day activities. There must be resources available in the organization for employees to develop new skills that address novel issues at different points in time, and not just during a certain training period. This is because employers cannot predict what skills are needed when, or by whom.
In addition, it is important to consider that different people have different learning styles. This means that not only should there be resources that provide training in a traditional manner, but this training should also be offered in multiple ways. Some learn better by doing, while others perform best by studying modules at home.
It is vital to remember that there are two sides to employee turnover. In some cases, lack of employee satisfaction is not the cause, but lack of compatibility is. Regardless of whether employees leave because they are unhappy with their working situation, or because their poor performance causes them to get fired, the costs are inevitable and employers should want to avoid them. So, by creating a thorough training program that addresses weaknesses in all areas of the business, companies will be more likely to avoid the costs of high employee turnover.
At CoreAxis, we use emerging technology to design the most efficient training programs. Our packages value each employee as an individual and offer customized solutions. These training programs simultaneously increase employee satisfaction and performance. This leads to a lower turnover rate, and a higher rate of success for the company in reaching its goals.