As is well known, the cost of replacing an employee is estimated at 2.5 times their salary at the time of departure. These costs are typically associated with: decreased performance in that position, low morale among peers and teammates (softer aspects); and recruitment, selection, and training costs (harder aspects).
To the above, we can add some contextual data from our country: during 2007, employee layoffs far exceeded employer-directed dismissals. What a statistic!
However, and despite the above, there are very few companies (regardless of their size) that:
• They create a high retention culture by starting with a study of the work environment.
• They actively reduce staff turnover through: potential assessments and performance-based recognition.
People migrate in search of training and career development opportunities. Consequently, the importance of retaining talent in an organization cannot be underestimated.
What concrete things can be done?
1- Bring the right people into the organizational "collective": a professional selection process that begins with a thorough description of the required profile will avoid the first part of the problems.
2- Communicate, communicate, and communicate: although it may seem like a hackneyed truth, few things are more important for creating a good climate and retaining people: roles, responsibilities, performance expectations, new policies, the progress of the organization. Nothing, absolutely nothing, is excessive.
3- Include everyone in decision-making in their roles and work areas: you may be pleasantly surprised by ideas that would never have occurred to senior management!
4- Facilitate knowledge sharing among team members: this encourages knowledge retention but also harmony and respect.
5- Evaluate performance and potential: Paying attention to people with growth potential through professional evaluations and clearly stating performance levels helps with retention, career development, and the perception that the company knows "who's who."
6- Shorten feedback time: no need to wait for the annual appraisal process! Regular feedback encourages performance improvement.
7- Offer market-competitive compensation packages.
8- Promote work-life balance: there is life outside the company!
And finally (should it be at the beginning??)
9- Obsessively monitor the quality of your supervision: people leave people, not jobs. Managers create the local climate (positive or negative), develop or stagnate, encourage or discourage. So be careful!
We hope, as always, to stimulate reflection. And action!
“Lech Walesa told Congress that the market for words is declining. He was right. The only thing the world believes in is behavior, because that's what we see instantly. None of us can keep preaching. We have to act.” Max DuPree.
Until next news
