One significant issue in today’s corporate culture is employee turnover. According to the Bureau of Labor Statistics, 4.9 million people left their jobs in January 2016. The number who quit was 2.8 million. While these figures are down from those of December 2015, employers should still focus on reducing turnover.
How can businesses retain the best talent and attract suitable new hires? It sounds simple, but the most efficient way to keep employees is to make them want to stay with an organization.
Does Money Motivate Employees?
There are some who say employee turnover stems from salaries, not engagement. Workers are expected to easily leave a fulfilling job for one that pays a higher wage. While it’s true that money is important, it doesn’t have the pull many believe it to.
Gallup posted a few statistics on employee engagement and the influence of a 20 percent raise. According to the organization, 54 percent of actively disengaged employees would leave for such an increase in salary. In fact, most unsatisfied workers would switch jobs for just about any raise. However, when compared to fully engaged workers, the amount who would leave for a raise of 20 percent fell to 37 percent. Twenty percent was actually the bare minimum for this group – the majority would need a higher increase in salary.
What Keeps Staff
Today’s employee is more concerned with the structure of a company he or she works for. Current staff members leave for a better environment, and the best applicants choose places that support their attitudes towards work.
There are five elements to the what it termed the “irresistible organization.” The first was meaningful work. Today’s employees want value in the daily tasks they perform. They also want to grow with their company and to trust its leaders.
Management was also a major factor in driving engagement. Employees need clear, transparent goals. Businesses can support them with management by objectives and RACI methodology.
RACI sets specific roles to determine who is responsible, accountable, consulted and informed about a particular goal.These outcomes are usually developed collaboratively and defined with goal setting software. Managers figure out what steps are necessary to complete these objectives and then assign each team member a RACI role accordingly.
Many businesses are concerned about the state of their staff members. Employee turnover is a significant problem, but there are actionable steps companies can take to structure themselves as an attractive business. This keeps employees from leaving for a competitor and brings in the best talent.