No matter what industry you compete in, what size or how long your organization has been around, losing quality employees is just bad for business. The costs associated with finding, hiring, and training new employees can be substantial. Employee related costs are most often the largest expenditure on an organization’s income statement.
According to the Wall Street Journal, replacing an employee can cost twice as much as the employee's salary. In addition to potential revenue loss, and the time required to bring a new employee up to a productive level, there may also be an impact on the morale of the remaining employees. Also, for many smaller organizations, this may mean the loss of a significant portion of the knowledge base.
For these reasons, employers are now seeking to quickly identify those employees that may be at risk of leaving and address any potential challenges before they become problems. This kind forward thinking behavior, (or predictive analysis), allows companies to mitigate risk and moderate the loss of valuable resources.
Employee retention is one of the key indicators of the overall health of an organization and you should make every effort to measure and monitor your retention rates regularly. As we have likely all experienced, life’s ever evolving circumstances can quickly change a happy employee into a resentful or disengaged employee.
Gather Employee Data First
Do you know what is causing your employees to leave? One of the most effective ways to understand what may be causing your employees to jump ship is to simply ask them! The more information that you gather about your employees the more effective you will be at monitoring and preventing the loss of your top talent.
Obtaining and tracking this information starts at the beginning. Have new employees fill out welcome surveys to learn about their goals, expectations, and fears. Learn what’s important to your employees and what motivates them. Use this information you get employees up-to-speed quickly and tailor training programs around their individual needs. Other useful employee data may include; how far they commute to work, if they own a home, if they work from an offsite location, their education level, or how long it’s been since they were previously employed. These and other factors can all have an underlying impact on the success of their employment.
Monitor and Manage Employee Retention Data
Once an employee is established, you should make every effort to monitor and track performance (and progression) within the company. How many bonuses have they received? How frequently have they been presented with an award or recognition? How many times have they changed job title(s), or have they completed special training or certifications?
Unfortunately, despite your best efforts, at some point you’re going to lose some of your best people. In those circumstances, take advantage of a standardized exit interview to better understand what may be impacting their decision to leave. Use those opportunities to improve the culture or processes for the employees that remain, and those that will become a part of the team later.
Use Technology to Predict Employee Retention
It is important to gather standardized information throughout the lifecycle of an employee’s time with you. However, its equally important that the gathered data is consistent, organized and collected in an appropriate, non-invasive manner.
Once you have compiled an accurate, consistent set of standardized employee data, its time to start looking ahead. The future of your business may be dependent on your ability to retain employees. So how do you start proactively, (instead of reactively), analyzing employee behavior? Its called predictive analytics and it means you can positively affect your future growth using your existing employee retention data.
Big Squid has built an easy to implement and easy to use prediction solution that can help you identify which employees are at risk. It can also predict what the replacement values of employees who leave and the reasons why they might leave. With this information you can then take action! You can be proactive about keeping your employees, as well as, predict how long they will stay and what is the actual ROI of your employee retention programs. To learn more about the many uses of Big Squids platform please join us for our upcoming employee retention webinar.
Wednesday, November 1st