We all already know that disengaged employees cost much more than a wage, but what about your engaged employees, how do you make sure they stay engaged and satisfied in their role?
Keeping hold of that perfectly engaged employee is vital for the long term health of your business. It is a key challenge for employers today with retention rates falling; particularly within generation X and Y where employees have different values than previous age brackets. The SHRM (Society for Human Resource Management) relay the costs of losing an employee as follows:
"The cost of replacing a single employee adds up to 30-50% of their annual salary if they are entry level, this rises 150% for a middle level employees and increases up to 400% for a specialised, high-level employee.
Statistics vary from business to business, just be aware of the following elements when working out the true cost to you and your business:
Recruitment costs (including advertising)
Training costs for the new-hire
Productivity loss throughout the first 90 days
So, how do you boost employee retention?
Identify precisely what it is that you value about your employee, what do they excel at? How do they improve your business? Are you utilising these skills in the right way? Develop the employee’s role to compliment their strengths rather than simply placing them in an un-flexible position. This will add a sense of value to their work and keep them engaged with their tasks.
Mark is the General Manager of Power2Motivate APAC, delivering world class employee recognition and B2B loyalty programs to a wide range of clients.
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