Turn An Exiting Employee Into An Engaged Employee
When an employee sits down to have the “I’m quitting” conversation with their manager, they feel obligated to give a reason for leaving. Typical reasons include getting an offer they couldn’t refuse, shorter commute time, a great opportunity, or an increase in salary. But is there anything else behind those answers? Is the outgoing employee just looking to avoid a deeper conversation about how they really feel? Why do employees REALLY choose to leave their jobs?
The average cost to replace a salaried employee is 30% of their salary, meaning that for a $40,000 employee, it could cost $12,000 to fill the position. So the answer to these questions is absolutely critical for the well being of any company. A recent article published on the Inc. website shared some of the top reasons employees feel the need to move on, including vague corporate visions, profits over people, and lack of recognition. Here are some ways to combat these hallmarks of a negative corporate culture.
1. Vague Corporate Vision: It is critical for every person in the company to be familiar with the corporate vision and mission so they feel their time and work is supporting something they can believe in. Gather everyone together a few times a year to focus on the vision and goals of the company and how those goals are being achieved. Show employees how their contributions are valued by arranging a special setting for these gatherings. It could be a special dinner or lunch at the hot new restaurant in town, a team-building ropes-course challenge, a picnic or field day at a local park, or as simple as bringing in a catered meal to the workplace. At Xplor, Inc., we host monthly “family dinners” and pick one topic during the meal as the focus of conversation. This allows everyone to weigh in and feel that they are providing value. We also make sure everyone knows how their role directly affects the company’s mission statement.
2. Profits Over People: The profitability of a company is extremely important, of course, but so is making sure that employees don’t feel that the bottom line is the sole focus of upper management. It is important to remember that it doesn’t large sums of money to recognize someone for his or her hard work. Finding room in your budget for small “splurges,” such as a fancy coffee machine in the lunchroom or a surprise giveaway of company branded swag, makes employees feel appreciated and valued. It may surprise you to see how giving the staff an extra day off for a job well done contributes to the bottom line in the long run.
3. Lack of Recognition: According to a study by Forbes, companies that embraced a “recognition-rich” environment experienced a 31% lower turnover rate. In today’s world, recognition needs to go beyond an employee of the month plaque in the break room. Having a fully-developed recognition program is a key part of being able to retain top employees. As a general rule of thumb, Xplor, Inc. suggests the minimum amount a company should spend each year on recognition is $1,000 per salaried employee. It may seem like a lot at first glance, but compared to spending $12,000 to replace that employee, it’s a bargain!
One of the best ways to recognize your employees, especially millennials, in this digital world is through a mobile app. Xplor has developed a full-service recognition app, called HappyStaff, which will be available exclusively for our clients this summer. This revolutionary app provides a way for the whole company to connect and the ability to instantly recognize and reward employees.
No matter the size of your budget or the size of your company, Xplor can help you design a custom recognition program to keep your employees engaged and excited to be a part of a positive corporate culture!