Focus on Internal Data, Not Industry Benchmarks to Improve Employee Retention
As the US job market continues to stay fully employed, organizations find it much more difficult to retain their employees because there are plenty of other jobs available elsewhere. A fully employed job market means that everyone who wants to work has a job. When the job market is fully employed, open and available jobs are filled by workers who left a previous job and not by workers who were unemployed.
Therefore, when organizations have positions available, they recruit and poach employees from other organizations which leaves the original organization scrambling to find an employee to replace the one that left. Adding up the costs associated with separation, replacement, training, and lost productivity all add up to hundreds of billions of dollars in turnover costs throughout the United States. This cycle goes on and on thus creating the high costs associated with replacing employees.
There is good news though: Organizations can create the workplace conditions necessary for their employees to stay retained and decline offers from other companies by knowing the reasons each employee chose to leave.
Workplace conditions that drive employee retention are not a one-size-fits-all solution. Based on the findings from Work Institute’s Retention Report, where we breakdown the responses from over 240,000 employee interviews detailing why they left the organization, only 7.6% of companies share the same profile for Reasons for Leaving.
It does not matter what industry benchmarks say retains employees because each organization is unique, and their retention efforts should be too. Each company has their own history, their own culture, and of course their own individual people. The only way to know what approach to utilize for retention purposes is to ask your employees. Utilizing an evidence-based, Voice of the Employee research approach with your organization uncovers retention drivers amongst your employees.
Unfortunately, many organizations take the easy way out by using industry benchmarks as gospel for why their employees exit the company. These benchmarks might help your organization retain employees, but why risk it?
Build your retention strategies based upon your own data, not averages from countless organizations throughout your industry.