How, exactly, does a successful business model maintain itself? It’s one thing to have all the right pieces in place — a good marketing plan, a solid budget and a bevy of resources to tap into at any given moment. It’s another thing entirely to keep these proverbial cogs moving back and forth throughout the year when it seems anything can go wrong. An issue facing many businesses big and small is the struggle of employee satisfaction and retention. Human resource staffing is a necessary component to analyze sociological trends and emotional stability in various populations, but not all businesses have asked for the assistance of outplacement companies. Will you be the one to break the pattern?
What Is Employee Retention?
The definition of employee retention is the act of maintaining a consistent workforce throughout the work year. Ongoing studies have been conducted to analyze what businesses think of employee retention and the actions they’re taking to curb the trend — nearly 60% of organizations view employee retention as a significant problem, something they put a significant amount of money and time into fixing. Over 20% of new hires will leave their jobs within 45 days of being hired, with reasons including poor performance, temperament issues and general incompatibility.
How Often Do Employees Leave Their Jobs?
Outplacement companies work day and night to analyze the rate at which employees leave their jobs, to better work toward helping business cultivate more consistent employee satisfaction and curb the trend. Nearly three million workers voluntarily left their jobs at the end of June back in 2015, a 25% increase compared to just two years prior. According to a study by Jobvite, over half of all employed workers are open to new job prospects even while they’re working part-time or full-time at a company.
How Does Diversity Help?
Diverse hiring practices are one of many important elements of a successful company and, as such, continue to be discussed at length in mainstream media outlets. Maintaining a workforce comprised of different perspectives and backgrounds will go a long way in providing the business at large with a plethora of inventive and unique methods of approaching problems. Ongoing studies by McKinsey’s research has shown gender-diverse companies are 15% more likely to outperform their male-dominated peers, while ethnically-diverse companies are a whopping 35% more likely to do the same.
What Is Employee Satisfaction?
A business is nothing without its employees. Employee satisfaction is the act of creating a positive emotional and economic environment for the workforce. A study showed over 85% of companies with employee recognition programs citing a noticeable increase in worker happiness. A lack of job security and personal fulfillment will spell disaster for any workforce, increasing the rate of sick leaves, poor performance and even termination. What does someone do with all these potential factors?
How Does Talent Acquisition Help?
If you want to reduce the rate of employee turnover and cultivate a more consistently happy workforce, you may want to consider outplacement services. The U.S. Department of Labor has estimated the average cost of a bad hiring decision equaling as much as 30% of the first year’s potential earnings, if not more. Employee turnover can reach as much as 150% of a person’s salary — on the flipside, new hires that undergo structured on-boarding programs nearly 60% more likely to be with the company for three years. If you want to cultivate a happier environment for your employees and potentially save thousands of dollars over the course of the year, look into outplacement companies to get you started on the right track.