Is employee turnover eating your lunch? The average cost-per-hire for companies Is $4,129, a Society for Human Resource Management (SHRM) survey finds. Forty-two days is the average time it takes to fill an open position.
When I asked a human resource manager why she worked on stability issues, she said, “happy employees equals happy customers.” In fact, according to research conducted by Great Place to Work, organizations with happy employees have increased revenue, reduced turnover by 50%, and outperform their peers on the stock market by a factor of three.
“But according to that same research, only 40% of employees report being happy at work. That’s a lot of unhappy people going to work every day,” writes Betsy Mikel of Inc.com.
Low-wage workers often experience higher levels of personal instability, which leads to absenteeism, health problems, violations of workplace expectations, and communication conflict. Employees living in the tyranny of the moment focus on meeting their needs of the day and simply surviving, while management is thinking about tomorrow, planning for the future, and focusing on achievement. The two collide at work, creating conflict.
One simple tip that improves retention is to create relationships of mutual respect with your entry-level, lower-wage employees. Ask about their family, listen to their stories, and share lunch together. Once employees know they are respected, they will have your back. That, in turn, creates a happier, more productive, and more dedicated employee.
If you are looking for alternative ways to retain and grow your employees, check out the online Workplace Stability Workshop, January 30, 2019.
Ruth Weirich, national consultant and author of Workplace Stability, is a management professional experienced in business operations efficiency and profitability. Ruth will help you identify the range of factors that create instability for employees and provide effective techniques and tactics for creating stability in the workplace.