Successful companies such as Apple, Tesla, Facebook, Google, and Virgin Atlantic to name a few, are often known for their hard-working CEOs, but when you take a closer look at these stellar businesses, you soon realize that it isn’t a one-man show but a culmination of the collective efforts of numerous team members. It is the assiduous workers who operate behind the scenes that make these companies special, and that is exactly why good leaders value high-performing employees. In fact, Sir Richard Branson, Founder of The Virgin Group, goes as far as to say that, “Clients do not come first. Employees come first. If you take care of your employees, they will take care of the clients.”
Retaining talented employees never seemed to be a problem for most companies, but over the past year, the ongoing global pandemic has triggered a new movement known as ‘The Great Resignation’. Coined by Professor Anthony Klotz of Mays Business School at Texas A&M University, the term refers to the mass voluntary resignation that began in early 2021. According to a survey conducted by the Bureau of Labor Statistics, since April 2021, nearly 20 million employees have quit their jobs, leaving numerous companies in desperate need of skilled new talent.
The sudden rise in employee turnover has had a significant impact on businesses. According to a recent report, productivity costs that arise from losing a valuable employee costs U.S. companies a whopping $1.8 trillion dollars each year. And even when companies find a replacement immediately, The Society for Human Resource Management (SHRM) estimates that it costs the business six to nine months of the employee’s salary to make up recruiting and training costs.
In order to avoid this mass exodus from occurring at your business, it is important to make a few constructive changes to keep up with today’s evolving business environment. Here are a few tips to help you retain your talented employees.
- Growth Opportunities
High performing employees tend to be highly ambitious and are constantly looking to learn, grow and evolve. As a leader, it is up to you to weed up these employees and provide them with the proper guidance to unlock their potential. When you provide employees with career growth opportunities and the ability to see a future within the company, studies show that it pushes them to provide better results and thereby enhances their performance at work. In cases where businesses have a lack of growth options and an increase in remuneration, research shows that most driven employees are influenced to look for new opportunities and change their jobs.
Studies have shown that lack of recognition from employers is the most common cause of resignations. The best way to combat this is by showing your team how much you value their work. “Employees are a company’s greatest asset – they’re your competitive advantage. You want to attract and retain the best; provide them with encouragement, stimulus and make them feel that they are an integral part of the company’s mission,” says Anne M. Mulcahy, former CEO and Chairwoman of Xerox Corporation. Research shows that employees who receive praise and recognition have higher self-esteem and confidence, and are eager to innovate and take on new challenges.
3. Flexible Work Environment
With numerous employees still working from home, it’s no surprise that a large number of them enjoy the flexibility that comes with it. According to a recent survey conducted amongst employees in the U.S. and the UK, more than a third believe their work-life balance was better during the worst of the pandemic. With commuting time slashed to zero, employees now have the opportunity to spend more time with their families and loved ones and even explore and develop new skill sets. A recent Zapier poll also showcased that 95% of U.S. knowledge workers want to work remotely, and 74% would be willing to quit a job to do so. The report also goes to show that full-time remote workers spend more time each workday doing meaningful work in comparison to their in-office counterparts. Flexible working hours or a hybrid work environment isn’t necessarily a bad thing, if done right, it can improve productivity and your employees’ work-life balance.
To conclude, diligent and productive employees are the bridge between success and mediocrity in the world of business. As an employer and leader, keep an open ear to the wants and needs of your employees. After all, a happy employee leads to more productivity and a better business.