Let’s start with how to retain top talent. Every employee is important to a company’s success, but I recommend you prioritize the most critical positions within your company, and the most critical employees within your company, and start to develop a retention plan for them and work your way down the organization chart. According to a study performed in 2012 by DDI (Development Dimensions International), one-third of all employees expect to leave their job within a year. With the cost of replacing a non-leadership employee (including advertising the role, managers time to interview, productivity loss, professional search fees, etc.) at 26% to 46% of the individual’s income, attrition can be costly. And the cost goes up for leadership roles, typically three times more than a non-leadership role.
So why do employees leave? Versique interviews thousands of Twin Cities employees each year from a variety of industries, functions, and at all levels.
Top 5 reasons why employees leave:
Poor relationship with their manager
Lack of work/life balance
Lack of meaningful work
Lack of trust in the workplace
A less than enjoyable culture or cooperation with their co-workers
Now that we understand some of the main reasons why employees leave, how can we improve retention?
Top 5 ways to improve employee retention:
Conduct a survey to understand what your employee base is lacking
Conduct exit interviews to learn why they left, and how your company can improve
Improve and promote open communication at all levels
Enhance your training and development programs, and consider creating personalized development plans for key employees
Hire people who not only have the right skill-set, but also fit your culture and core values
As mentioned in my last blog, finding top-tier talent in the Twin Cities is only going to get tougher in the years to come. The easiest way to solve this problem is to retain the current top-tier employees you already have. Next time, we’ll cover how to attract top-tier talent!
As a thought leader within the industry, Steve has spoken to a variety of audiences through organizations such as Next Level Exchange, National Association of Professional Services and Small Business Summit.
In addition to his leadership responsibilities, Steve has been retained by Board of Directors, CEOs, Business Owners and top-tier investment groups to fill critically important senior leadership roles. Steve has worked with variety ownership structures including, family owned/privately held, venture capital and private equity within a variety of industries.
Steve also serves on a three non-profit boards including a 44 bed woman and children’s shelter, The Eagle’s Nest, the Minnesota Recruiting and Staffing Association and Rockford Area Athletic Association.