As mentioned here last week, we recently released a new e-book on retention called Employee Retention: How to Keep the Right People Working for You. This free e-book has been meticulously packed with the latest research and best practices on employee retention. Well, if you’re starved for time and just want the highlights, we created a new retention and turnover infographic that distills the major facts from the e-book.
Please feel free to download and share!
Check out the infographic below for a more in-depth look at some of the startling facts.
Download the retention and turnover infographic now
A look at the facts in-depth:
Only 56 percent of North Americans report that they would definitely remain with their current organization for the next twelve months.
That leaves 44 percent who are at risk of leaving. Professor Holtom from the McDonough School of Business at Georgetown University claims that for management, retention of high quality employees is more important today than it ever has been in the past. With new trends such as globalization and the increase in knowledge, work, and technological advancement, it is necessary for organizations to attract and retain employees who will fit well with the organization for future success. Moreover, studies show that there is a direct link between organizations with high rates of voluntary turnover and decreasing performance levels.
Getting a better understanding of turnover is recognizing the difference between functional and dysfunctional turnover, and distinguishing between turnover that is harmful and turnover that can be beneficial. For example, when poor performance employees leave this can be functional turnover; however, when high performing employees leave this is dysfunctional turnover for the organization. Mangers need to assess turnover cases to either encourage or discourage employee turnover. Understanding the intricacies of retention and turnover will benefit all organizations.
There are various estimates of the costs of hiring and training new employees, ranging from 25% to five times the annual salary for the position.
Retention and turnover costs are difficult to see and calculate — they cannot be captured as simply as listing turnover costs, because these costs are mixed in with recruitment, training, and temporary staffing. Furthermore, there are unseen costs that stem from losses in customer service relationships and knowledge, which are unmeasurable. Read more on direct and indirect costs of turnover on ClearFit’s new infographic here in this blog.
36.6 percent of employees say “Doing an important job” is a top choice when looking for work.
Motivational factors, particularly job satisfaction, are directly related to retention and turnover. When an employee’s goals and values are in line with the job and the organization at large, they are more likely to retain their positions. Employees seek positions that fulfil their intellectual and emotional desires. Applying employee selection techniques at the recruiting stage that account for motivation aspects, will help to predict future retention and turnover.
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