![]() Work-life balance: Employees want to balance their work and personal lives.The employee value proposition (EVP) should be clear, consistent, and competitive! If employees feel like they need to be paid more or their benefits are not aligned with the industry, they’ll find an EVP that resonates elsewhere. Compensation and benefits: Employees want to be fairly compensated for their work and access good benefits.Therefore, it is crucial to understand why employees leave so quickly and strategic steps that can be taken to improve employee retention. This can result in expensive issues, including reduced employee productivity, increased expenses, and a negative impact on customer service. As a result, employers and entire industries face substantial gaps that must be filled.Ī study by McKinsey & Company conducted in Australia, India, Singapore, Canada, the United Kingdom, and the United States revealed that 65% of employees who resigned from their jobs between April 2020 and April 2022 did not return to the same industry.Ī high employee turnover rate within a company over a specific timeframe, as opposed to a reasonable retention rate, impacts a company’s growth. In the United States, there has been a significant increase in the number of employees quitting their jobs voluntarily, with a 25 percent higher rate from December 2019 to May 2022 compared to pre-pandemic levels. Let’s start with the reasons for high employee turnover so we know what to watch out for. Starting on the first day of new employee onboarding, they must create working conditions that support a high retention rate. Hence, business owners, managers, and employees need to implement some simple strategies to head this off. Even worse, as they’re always the one to buck averages, a Deloitte study revealed that millennials’ turnover rate is even higher, at 21%. And research by the Bureau of Labor Statistics shows that the average employee turnover rate in the United States is reaching 13%. The average cost of replacing an employee is 1.5 – 2 times their annual salary, according to the Society for Human Resource Management (SHRM). And it’s important to quickly identify the culprit. These include low morale, weak management, or a lack of opportunities for growth and development. Conversely, a low employee retention rate indicates there are problems. Companies generally consider a high employee retention rate a positive sign, suggesting that employees are content with their jobs and will likely remain longer.
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