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Everyone knows a good recruiter is worth their weight in gold. Finding and hiring the best employees plays a critical part in any company’s success, but only if you’re able to keep those employees.
A 2019 iHire Retention Report found that over 50 percent of employees have voluntarily left a job in the last years, and the Bureau of Labor Statistics (BLS) reported three and a half million voluntary job separations in October and November of 2019.
As the job market continues to improve, current employees are becoming well aware of the options they have. A 2018 Addison Group survey found that nearly three-quarters of job seekers are confident in their ability to secure a position quickly, putting even more pressure on busy recruiters to master cumbersome tasks such as passive sourcing.
As talent becomes more difficult to retain, companies are increasingly stepping up their internal mobility and retention efforts to secure the many benefits that come with long-term employees. Here are some of the most effective tools companies can use to increase retention.
Employees are more reluctant to leave jobs that take care of them. Provide benefits your employees can’t find anywhere else, and they’ll be a lot more likely to stick around.
Some companies make the mistake of prioritizing salaries, which are often easier to figure out than an elaborate benefits plan and more superficially attractive to candidates. This strategy, however, is shortsighted. A Glassdoor study found that while increasing pay improves job satisfaction, the effect diminishes the more an employee earns. Meanwhile, an SHRM study found that the right benefits (including paid time off and quality health plan options) actually increase job satisfaction more than a pay increase.
Provide growth opportunities
Research on employee loyalty has found that providing career development opportunities is the single most important factor in establishing and maintaining loyalty among your employees.
If you want your employees to stick around, show them that you’re invested in their growth. One of the most popular functions of the Censia Talent Intelligence platform is the opportunity to find talent ready for promotion and upskilling within the company and to compare them with external applicants.
Once you’ve found that talent, provide them mentorship within the organization, training opportunities, and other growth-oriented benefits such as tuition reimbursement. By playing a part in their career growth, you’ll find your employees become more vested in living out that growth within your organization.
Empower your employees
Studies have shown that creating internal mobility and empowering your employees creates greater retention. A Harvard Business Review study found that Empowering leaders had more creative, helpful and engaged employees, the latter of which correlates to a 22% increase in productivity.
One path to employee empowerment is to improve the employee experience, starting from the hiring experience. AI-powered solutions like Censia’s Talent Intelligence Platform can automate some of the most time-consuming tasks in recruiting, leaving recruiters more time to connect with talent.
Honor work/life balance
It’s no secret that this next generation of workers cares a lot about establishing and maintaining a healthy work/life balance. Retaining them means showing you value that as well.
By offering flexible work arrangements you may just find your employees accomplish far more than their micromanaged peers.
The research shows that allowing for flexible work schedules improves productivity and job satisfaction. Working from home also increases productivity, to the tune of three additional weeks of work product a year. Employees offered unlimited PTO, one of the most desirable benefits, rarely take more time off than their set-limit PTO counterparts, and yet strongly correlates with health and happiness.
The tech industry alone loses 16 billion dollars per year due to turnover, and a study by the Kapor Center found that 57% of the people who left would have stayed had companies taken steps to make the culture more fair and inclusive.
To boost the diversity of your workforce, make sure your interview pool is comprised of at least 50% diverse talent. A Harvard Business Review study found that simply inviting one or two diverse candidates for interviews does not lead to a statistical increase in diverse hiring. It is not until at least 40% of interviewing candidates are diverse talent that their rate of being hired actually increases. The Censia Talent Intelligence Platform provides you an ample and diverse pool of highly-qualified talent, making it easier to increase the number of interviews with diverse talent and simultaneously improves OFFCP compliance.
Promote from within
Ultimately, one of the best ways to retain your top employees is to continue challenging them and showing you value them by promoting from within. People like to know they have room for growth within the company they’re working, and it sends a message to all employees when one’s years of service are rewarded with new opportunities as opposed to bringing an outsider in.
Not only that, but according to research from Wharton University, hiring external employees as opposed to promoting from within tends to cost companies more money and lead to lesser results. We did a deep dive into the subject not too long ago, showing not just how to accomplish internal mobility using AI-powered technology.
The ROI of Retention
Reducing turnover and pursuing internal mobility pay for themselves. While replacing an employee with a lower-salaried employee might free additional funds, it can also lead to significant losses in productivity, institutional knowledge, and client relationships, not to mention the cost of recruiting and training a replacement. A common figure in HR circles is that the price of a lost employee is roughly equal to a year’s worth of their income.
Censia will be launching an ROI calculator that allows you to calculate your own recruiting costs and how various initiatives can improve your ROI. If you’d like to receive a copy, you can join our mailing list by emailing email@example.com.
If you’d like to learn more about how Censia can help you find the best internal talent for a role and compare them to new applicants in just seconds, you can request a demo at censia.com.