- Adventure Capital
What's Your Job Offer?
Companies can be swallowed up by high employee turnover rates. The cost and energy required to replace employees who leave can become a continuous loop unless the reasons are better understood and addressed. If you're the one responsible for keeping chairs filled, you know it can be a daunting task to find and train new employees while maintaining morale for those who stay behind.
An unhappy employee may not be simply a result of the daily office grind. An emotional component of employee fulfillment during nonworking hours could also be at play. A lackluster attitude can be infectious at work if it's not contained or diagnosed.
Studies have shown that the millennial generation is often looking for a life with purpose. It's possible this goal may not be reached while at work no matter the job. An improved quality of life beyond the office walls could make the demands at work more tolerable, or even enjoyable. One's general attitude can have a huge impact on job performance, patience, and healthy working relationships.
This notion leads to the level of fulfillment found in an employee's daily life. How do they cope with time that is swallowed up by simply getting to and from work? This routinely lost personal time can be a significant downer if your employee is doing the math. Do they live in a costly, cramped, and congested area that drains their paycheck? Are there activities they can enjoy that don't require spending their hard-earned money? Are there nearby outdoor activities that are shown to decrease stress while providing nature-bonding experiences? Do they have access to support networks at work and in the community where they reside?
High employee turnover hurts a company’s bottom line according to the Wall Street Journal. Experts estimate it costs upwards of twice an employee’s salary to find and train a replacement. There are some recommendations WSJ compiled to help lower your company's attrition rate:
1. Hiring the right people from the start, most experts agree, is the single best way to reduce employee turnover. Interview and vet candidates carefully, not just to ensure they have the right skills but also that they fit well with the company culture, managers, and co-workers.
2. Setting the right compensation and benefits is important too. Work with human resources to get current data on industry pay packages, and get creative when necessary with benefits, flexible work schedules, and bonus structures.
3. Review compensation and benefits packages at least annually. Pay attention to trends in the marketplace and have HR update you.
4. Pay attention to employees’ personal needs and offer more flexibility where you can. Consider offering telecommuting, compressed schedules or on-site or backup daycare.
5. Bolster employees’ engagement. Employees need social interaction and a rewarding work environment. They need respect and recognition from managers, and a challenging position with room to learn and move up.
6. Managers often overlook how important a positive work environment is for staffers, and how far meaningful recognition and praise from managers can go to achieve that. Awards, recognition, and praise might just be the single most cost-effective way to maintain a happy, productive workforce.
What can your company offer your employees that sets you apart from others? For every new employee you take on there's a good chance they are part of another company's attrition spreadsheet. The idea is to keep them happy and keep them longer.
Evaluating the current working conditions within the office is just half of a formula for success. Are local educational institutions willing to help with workforce development? Are you in a safe area with housing nearby? Can your employees get to work quickly without fighting traffic? Are amenities located between work and residential communities where daily errands can be done conveniently? For those with families, are there good public schools and programs in which their children can participate?
Many companies are beginning to recognize the pitfalls of locating in crowded, urban settings. Metropolitan area real estate is pricey and rush-hour commutes rob employees of time they could spend in more rewarding ways. The job you offer may stay the same but providing an environment that is pleasant and user-friendly could turn those frowns upside down.
Rural settings are becoming increasingly popular with companies that experience high turnover rates. A more relaxed lifestyle can enhance each day, making even a pressured job acceptable. There may be little point in getting one's house in order if it's simply not situated in the right place. Having a desirable work location as part of your benefits package could be the best perk your company can leverage to secure long-term employees who value where and how they live.