Take a quick walk around the office and count the first 10 people you see. If recent survey results from the Society for Human Resource Management are correct, at least four of your fellow employees won’t be there at this time next year. Well, at the very least, they won’t want to be there. And as the job market continues to improve, it’s more likely they’ll leave and find work elsewhere and your company will need to hire their replacements. Replacements who, according to the SHRM, won’t begin work for an average of 42 days after the previous employee leaves and will cost to $4,000 to get in the door.
According to the findings from the annual “Employee Job Satisfaction and Engagement Survey,” conducted by the Society for Human Resource Management, 40 percent of employees reported the possibility of seeking employment outside of their current firm within the next 12 months.
Compensation the determining factor
Although 89 percent of employees tell SHRM that they are satisfied with their current jobs, the high percentage of people considering looking for a new employer would do so for a bigger paycheck, better benefits, more job security, and new opportunities. “In this somewhat positive job market, the balance is in favor of employees,” Evren Esen, SHRM director of workforce analytics, told Phil Albinus of Employer Benefit News. “Employees are in high demand.”
SHRM officials suggest a series of steps to improve employee retention. Some of these steps include:
- Benchmark against compensation surveys to verify whether salaries are competitive with current market rates.
- Start a pilot program where employees can be nominated or volunteer to participate in gaining new skills and knowledge.
- Identify skills and abilities that employees may be underutilizing and discover ways they can be applied.
- Promote honest communication and offer employees opportunities to voice their concerns about their position.
The SHRM study suggests employers create an open atmosphere – one with no negative consequences – regarding encouraging employees to offer comments, suggestions or grievances. One study cited that employees who experienced positive personal incidents were more likely to hold greater perceptions of procedural fairness, which also resulted in higher degrees of satisfaction and increased the probability of staying with the company.