Employee churn is an expensive affair for any organization.
According to one out of four CFOs surveyed for a Forbes study, unwanted turnover accounts for 25% to 50% of labour costs resulting from potential loss of sales, diminished customer experience, increased hiring expenses and more.
The worst part is 57% of organizations lose 15% or more of their new hires within the first year, which is problematic. But do you know which factors are responsible for employee churn? Here are a few that most dominantly cause a ripple:
- Poor company culture
- Inadequate pay
- Disconnect with leadership
- Negligible employee engagement
- Lack of opportunity or career growth
Not so surprisingly, the same Forbes study highlighted poor employee engagement as the prime cause of unwanted employee turnover.
You will not be surprised to know 60% of employees are actively or passively looking for a new job. That’s a significant number; but spending the time to train, manage and engage employees is far more cost effective for organizations than replacing an employee.
And the sooner they realize this, the better it will be. Adding to that, here are five ways to improve employee engagement:
1. Give heftier employee benefits
Absolutely! Every employee likes to be paid handsomely, but if you combine the cash pay with additional benefits, the deal should look much sweeter. Such benefits can include medical, life and dental insurance, apart from the government saving scheme, Provident Fund, a generous leave policy.
Organizations can also offer tuition reimbursement plans for employees who are still paying off education loans. The amount doesn’t have to be huge. Even a small contribution can make a lot of difference to an employee.
2. Keep running surveys anonymously
Tools like SurveyMonkey have made it easier for organizations to take anonymous workplace surveys. You can periodically interview your employees about their contentment and satisfaction at their job and gather complaints or feedback that can help you improve the overall experience at your end.
The practice is beneficial for two reasons:
- It will help you discover hidden problems in your organization.
- It will make your employees feel heard and valued provided you work on the feedback and make changes within the organization quickly.
It is also possible to run Employee pulse polls and detailed surveys, anytime, through your own client-branded apps such as Empass Assess.
3. Participate in CSR activities
According to a Benevity study, the unwanted employee turnover dropped by 57% of those organizations that connected with their employees through volunteering efforts. Therefore, organize CSR initiatives periodically or participate in philanthropic activities.
It could be conducting a green drive or participating in a marathon, sponsoring a small government-run school. There are far too many options that you can choose from depending on the budget and the aim you hope to achieve via the CSR activity.
4. Make the onboarding process enjoyable
Onboarding is the first point of contact a new employee has on joining the organization. Most of the time, sitting through the process is an ordeal with little to achieve. The best way to make it more interesting is by implementing bite-sized learning modules for employees that can be consumed as per their convenience.
Not everyone learns the same way and within the same time frame. If you offer customizable training methods to the new joiners, they will feel more comfortable, get acquainted with the company and the processes faster and start delivering better results.
5. Training programs should be flexible
Adding to #4, the concept of microlearning should not be restricted to only onboarding. Training programs should also incorporate the same and allow employees to take quizzes, curated courses, and real-time gaming assessments so that they keep learning at a comfortable pace.
Many mobile applications can help your organization embrace microlearning. Empass, for instance, strives to make learning hygiene and to make sure that the users learn something new every day.
They enable learning with 25+ skills, curated courses, real-time gaming assessments that come with spaced repetition and 16 difficulty levels. You can learn more about the solution here.
The value lies in employee engagement – making sure they actively contribute to the growth of an organization while learning new skills and advancing their careers. And if you can boost engagement levels, nothing is stopping your organization from scaling the charts!