Organisations can save between 50% to 250% of the salary cost of a new recruit and the solution is frankli quite simple - make sure your business has an employee satisfaction strategy so that current team members don’t want to leave.
If your company is currently hiring due to expansion or organic growth, it’s relatively easy to accept the financial hit, as a great hire will hopefully pay off the recruitment costs over a respectable number of years. If you’re having to shell out to replace a current team member, however, it’s much more difficult to carry the total costs of 50% to 250% of the annual salary (including fees and lost earnings).
And if it’s happening frequently, there’s the worrying doubt that the new team member may stay no longer than the one who’s now leaving. It’s well known that someone leaving the organisation often presents a time to ‘stop and think’ for everyone on the team. One person’s decision to leave can often trigger others to follow suit, so there really is a major prize on offer if you focus on reducing attrition as far as possible.
And conversely, however, the savings you can make are completely off the scale when you’re proactively making the work environment a place where satisfied employees feel they belong, have a sense of purpose and where they can grow and flourish. Here are some of the more frequent reasons why people leave – and some helpful tips to make sure that you head off a potential ‘quit’ long before it has a chance to grow legs.
Relationship with the boss
The members of any team don’t necessarily need to have a strong personal or social relationship with their boss, but they do need to have a working relationship that makes sense for both of them. ‘The boss’ is such an important part of our day-to-day working lives that it’s virtually impossible to stay in a role if there is dislike or distrust at play.
One of the benefits of a platform like Frankli is that it allows for both team members and their manager to provide honest feedback to each other. Getting things out in the open in this way can pave the way for a constructive conversation on how to work better together and improve job satisfaction. And in exceptional cases, where the chemistry is poor due to neither side’s fault, a transfer can easily be arranged to a new team – and a new manager.
A lack of challenge
Sooner or later, even the most motivated employees outgrow the job we were hired for, and familiarity with a particular role can potentially lead to boredom and apathy. For companies that already have a company culture that actively engage with people on a regular basis, this is highly unlikely to happen, as there are built-in opportunities to nip things in the bud and create meaningful career paths and other opportunities for everyone to contribute.
The response to somebody feeling that they’re no longer challenged is to explore new roles, new responsibilities, and perhaps whole new departments. The company gets to keep the initial talent and commitment of the individual – along with a whole new burst of energy as the new chapter in their career development kicks in.
No alignment with the employer’s business goals.
All companies are made up of hundreds of moving parts, and individuals within an organisation can sometimes feel that their own particular role is making little or no contribution to the overall goals of the business. This is an absolute shame, as the role simply wouldn’t exist if it wasn’t fulfilling a function.
Regular 1:1s are a great way of reminding people why – and how – they’re helping the company to succeed. It reminds us of the story of JFK visiting NASA in 1961 and asking a janitor with a mop why he was working so late. The janitor replied that “I’m helping to put a man on the moon, Mr. President.”. Having a big vision is brilliant – but if people share that vision, and see their own contribution as being important, it’s sheer magic!
Someone looking over their shoulder.
A helpful and supportive boss is one thing, but someone constantly looking over your shoulder is a major turn-off for employee morale, regardless of what sort of work they’re carrying out. This is certain to lead to a dissatisfied employee. If you’ve hired the right talent, and armed them with the training needed to succeed, it’s essential that you show your confidence in the individual by ‘letting go’.
Of course there will be mistakes, but these should be looked upon as learning opportunities rather than failures.
And if you truly trust the team to do the work they were recruited for, it’s amazing how often they will look to repay your confidence in them by delivering consistent excellence.
The bottom line is that it’s unbelievably more cost-effective to ensure that your people are not simmering away in the background, letting various issues fester and eventually boil up to a resignation. Keep the lines of communication open, keep inviting feedback, keep providing opportunities for employees – and keep saving an absolute fortune in the cost and disruption of attrition.
For further information on how Frankli can help you to automate team performance management improve employee satisfaction and the overall employee experience, please contact Book a Demo Request here