Statistics show that there is a great shortage of labor workers throughout the world. For instance, if we look only in the US, we will find 10.4 million job openings. 4.3 million are vacant because former employees have quit their jobs. This makes recruitment a massive challenge for organizations. And this, of course, affects the economy on a very large scale.
Research reveals that the estimated amount a company pays to hire an individual is somewhere around $4000. In our opinion, this seems low given other hidden costs that can be difficult to quantify such as how the culture and team dynamics are affected. And the hustle doesn't stop once the labor contract is signed.
The secret for a successful business is to actually manage to keep the employees within the company, not just bring them into the team. The worst thing that could happen for an organization is to start the whole recruitment process all over again in a few months or a couple of years. We’ve heard quite a few stories lately of employees just leaving in a matter of months to pursue new opportunities. Truth be told, employee retention is a crucial aspect of a company.
Now, the funny thing about turnover rates is that they can be anticipated. As a matter of fact, more than 75% of the reasons people decide to change jobs can actually be prevented. And an even more interesting fact is that happy people don't tend to look for other job opportunities.
As we already discussed, we cannot put a barrier between our personal and professional life. Thus, as long as we are happy at work, we are also happy in our leisure time. And vice versa.
Of course, as a leader, you don't have too much to say about the aspects influencing your employees outside the organization's walls. But you can, however, make sure that everything related to their job is progressing well. Really take the time to ask each individual in your group about their context and their satisfaction level. Don't wait for them to send you signals indicating a problem, but get in touch with your employees weekly to catch problems, before they become bigger problems. By doing so, you can find out the root of some minor issues and fix them in a matter of days, if not hours.
One thing that you should always keep in mind is that people are loyal to great managers and healthy work-related relationships. So, as a leader, you need to make sure that you nurture your team and company culture. Furthermore, as a leader, you should offer your employees growth opportunities, helping them become the best version of themselves. Just as important, as a leader, you should always recognize their accomplishments but also discuss their failures. Last but not least, as a leader, you should empower your employees. You should give them a voice so they can tell you exactly what makes them happy and what doesn't.
So, our take on the matter is simple. You can't interfere in people's personal lives, but you can and should give them a reason to smile each day.
When you’re happy, you smile. And smiles are contagious.
Because happiness is the fundamental factor influencing retention rates among employees. Happy employees are loyal and engaged employees. And that is the foundation for a low turnover rate, ultimately leading your organization towards success.
