According to ERE Media, replacing an entry-level employee costs 30-50% of their annual salary while replacing mid-level employees costs 150%, and replacing high-level employees costs a staggering 400% of their annual salary. These statistics show clearly how important it is for employers to focus on employee retention. Those companies that retain high-performing employees have one thing in common: they offer, enable, and reward growth in their most talented employees.
1. Competitive Incentives
While Glassdoor reports that 43% of job searchers look for health benefits, and 44% prioritize a 401K option, the most important incentive according to 52% of job searchers is growth opportunities. The best employees want to get better, and the most competitive option you can offer to ensure their engagement and retention is the opportunity to hone their talents and expand their expertise.
2. Thorough Training
The presence or lack of training is one of the most under-valued components of company advancement as only 1 in 10 report using what they learn in their training while 7 in 10 feel that they are not achieving their full potential due to a lack of training. As 70% of employees say training influences their decision to stay or go, thorough and effective training — resulting in confident and positive growth attempts — is an essential component in retention.
3. Liberal Recognition
The statistics regarding employee engagement and its relation to positive recognition are staggering. According to a BambooHR survey, 75% of employees receiving at least monthly recognition — even if informal — report being satisfied with their job, and 3 in 10 would rather be recognized in a company-wide email from an executive than receive a bonus of $500.
When employees are giving the opportunity and the training to expand their talent and are officially recognized for their achievements, they become enthusiastically dedicated. Offering, enabling, and rewarding growth is therefore the best investment you can make in your employees’ retention.
For more information and ideas, or to start integrating these components into your employee support, please contact us.