The consensus is that the Great Resignation is not over. Whether it is “quiet quitting” or simply employees seeking a higher salary, employee turnover is still an issue.
- 61% of US employees are considering handing in their resignations in 2023
- Another survey states 49% of employees say they plan to explore their options in 2023
This places a burden on HR to replace workers within shortened timelines. Furthermore, this affects the bottom line, as SHRM reported that on average it costs a company 6 to 9 months of an employee’s salary to replace him or her while Gallup states the cost of replacing an individual employee can range from one-half to two times the employee’s annual salary — and that’s a conservative estimate.
Losing your best people means losing your reliable winners,
your constant innovators, and your most effective problem solvers.
What HR Can Do About It?
Orientation and onboarding are the first impressions an employee has from inside your organization, but employee retention needs to go well beyond the first few days to keep an employee not only interested but part of the solution.
The way to reduce turnover and
make employees more interested and productive
is by giving employees purpose.
Giving employees meaning can be systemized so your organization helps employees find purpose within your organization. Furthermore, a fundamental aspect of resilience, the most common way to combat burnout and resulting turnover, is by helping employees find meaning. Helping employees find their purpose can drive productivity. The more autonomy employees feel, the more likely they will blossom in what they do, and the more engaged they will be. Not only does engagement increase productivity, but an energized employee will be much more likely to stay and grow with a company.
Even though there is a documented ROI of $2.71 for every dollar spent on employee wellness programs, in order for employees to be a part of your strategic solution, your approach should also focus on employee development.
“Train people well enough so they can leave,
treat them well enough so they don’t want to”
– Sir Richard Branson.
Tactic 1. Data is your ally
You can’t manage what you can’t measure is the old saying, and successful enterprises will understand and monitor turnover intention, and explore drivers of employee engagement. According to a survey conducted by PwC, highly data-driven organizations are three times more likely to report significant improvements in decision-making. A good HRIS System with Performance Management can capture data at every stage of employee work. HRIS Talent Management (TM) can increase employee participation through regular employee assessments – development needs, career aspirations, strengths and weaknesses, abilities, likes, and dislikes. According to Gallup, “utilizing the skills and strengths of employees regularly improves their engagement by six times.” Let data help you understand where best to utilize your employees and where their strengths, skills, and desires are a fit.
Tactic 2. Cross-function to future proof
HR can help build an agile “resilient organization” by knowing skill inventories (resource desires and availability) lying within the organization. By utilizing TM, as well as project management (resource allocation) functionality in your HRIS, HR can support:
- staffing strategic opportunities faster and cheaper
- increasing productivity – the right person is deployed in the right position
- increasing job satisfaction – better alignment between an individual’s interests and his job profile – leading to decreased attrition and increased productivity
People now come into their jobs with many more expectations: to be supported, to have growth opportunities, and to be granted flexibility.
If compensation becomes table stakes, employees look for all these additional pieces
—like well-being and flexibility—to stay at a job versus go look for a new one.
– McKinsey
Tactic 3. Adopt a new advancement model
Research from PwC, Accenture, and LinkedIn reveals the very real need of particularly younger-generation (Generation Z and Y) employees to have a steady and frequent expansion of responsibilities. A data-driven HRIS can allow HR to use analytics to determine the organization’s future workforce needs. When an HRIS allows you to define organizational objectives at the division, department, team, and employee level – everyone can support the strategic goals. By using analytics to determine the organization’s future workforce needs, HR can measure workforce talent and milestones to help identify the skills gap in advance. In summary, your HRIS can play a critical part in planning promotions to support the organization’s leadership needs by matching them to your employees’ training and advancement desires.
Passionate about Employee Development
Having an HRIS from Alchemus can help you grow and retain your employees. They are in business to support your growth and to grow with you. Alchemus understands the importance of HR cost savings and focuses on the success of your organization. Tell them your HR and organizational strategy and allow them to demonstrate how we can help you achieve your HR goals.
Schedule a no-obligation demonstration today!