Boosting worker retention
Think tanks like the Center for American Progress have found the cost of replacing an employee depends on that team member's position. In 2012, it was an average 16 percent annual salary for high-turnover jobs; a $10/hour retail worker, for example, would be $3,328. A $100K-a-year CEO would cost $213,000 to replace four years ago. Either amount is too much and can often be remedied with proactive retention efforts.
Know managers are your first line of defense. In a Forbes.com article, Bill Conerly quotes HR expert Steve Miranda, who says, “Employees don't quit jobs. They quit managers.” Along this theme, regular meetings on performance and expectations keep lines of communication open.
Increase access to the upper hierarchy. In companies, it's not unusual for there to be a cultural barrier blocking upper management from junior employees and executives, with middle management in between. Kathryn Minshew of FastCompany.com reminds companies they need to do whatever they can to remove this barrier, whether that means an open-door policy, corporate leaders mentoring junior employees or other methods. “If you rope off your executives, you create tension in the ranks … A culture that values transparency and access will breed trust and loyalty.”
The counteroffer is a fail. Data from CEB, a business best-practices resource, found employees who look elsewhere and get and accept a counteroffer from their current workplace still leave within a year, CEB's Brian Kropp told Harvard Business Review. Making a counteroffer should never be seen as a solution to a need for retention efforts, which need to be in place early and be actively reviewed, nurtured and expanded. “Employees who accept a counteroffer are most likely going to quit at some point very soon,” he says.
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