Employee turnover has increased steadily since 2018. The pandemic, economic uncertainty, inflation and the drive to hybrid or remote work means that 1 in 2 US employees are open to leaving their roles. This lack of engagement is easy to blame on the pandemic and hybrid working but the rot has started in 2018 prior and accelerated since.
These results are similar in the Middle East. So what can employers do to reduce turnover and increase engagement?
The hidden costs of high turnover are huge. 4x salary for C-Suite leaders, 2x salary for mid level managers.
Pay and benefits have long been the simplest tools to fight turnover and inflation but that is only one part of the equation and not the real soltuion.
Everyone know that the impact of a pay rises last 1-2 months at best. This does not buy you discretionary effort and engagement.
Over the coming decade AI will disrupt the workplace and jobs market like never before putting more pressure on leaders to look at how they attract, reward, develop and retain their people.
The challenge for most organisations is that they are not investing enough in the critical areas of their businesses, ie. The people.
The C-Suite are always happy to invest in acquisitions, a new technology system (which often fails) or huge marketing spend only to be loosing money due to a lack of engagement, growth and wellbeing for their employees.
We see 4 major areas that will determine who wins the war for talent during this period and all of these are within your control as a leader and organisation.
Leadership, Culture, Development and Wellbeing.
Companies that manage to crack the code of the this magic compass will have the choice of the best talent assuming fair compensation.
Having invested to acquire the people you have if you are not auditing your leadership, culture, development and wellbeing to make it fit for purpose you are pouring money down the drain.
Invest in Leadership, Culture, Development and Wellbeing and you will likely see the best ROI and ROE (Return on Energy) you can imagine.
Watch this space for more on these topics. Where do you think companies should invest the most:
Leadership?
Culture?
Development?
Wellbeing?
Let me know in the comments.
#leadership #engagement #turnover #culture #development #wellbeing
While voluntary employee turnover rates have stabilized since the Great Resignation due to cooling economic and job markets, employees’ long-term commitment to their organizations is currently the lowest it has been in nine years.
Employee retention challenges are emerging, and failing to act could lead to costly replacements in the future. Gallup estimates that the replacement of leaders and managers costs around 200% of their salary, the replacement of professionals in technical roles is 80% of their salary, and frontline employees 40% of their salary.
Learn what actions managers can take to reduce employee turnover. https://lnkd.in/gM_-_--V
