If you've read a newspaper lately you've likely heard of the Great Resignation. People are quitting their organizations at unprecedented rates. The pandemic has given people perspective, time to think and the feeling of autonomy—what we’ve experienced working from home rather than going to an office. In addition, many of us have felt overworked, under-resourced and beaten down over the past year.
No one seems to be immune from this right now, and while turnover varies from industry to industry, it's safe to say you can't afford to lose top talent. Top talent holds the power. If people weren't happy in 2020, the pandemic only exacerbated what they were already feeling.
What You Lose When Talent Leaves
When talent leaves, they take their talent with them and seeking out new talent costs companies time and money.
According to the BONUSLY TURNOVER CALCULATOR, when an organization of 500 employees—with an average annual salary of $65K—loses 90 employees over the course of a year (a turnover rate of 18%) that company will be spending over $3,000,000 in turnover costs. This is calculated from industry averages for how much it costs to find, hire, and onboard a new employee. Ouch.
On the human side, consider that every individual who contributes to your team or organization brings a unique lens that helps the organization grow and succeed. Once they’re gone, you lose their perspective, their skills, and their creativity. Although companies can seek out a fresh lens and new talent, it can also be said that in some sense, no one is truly replaceable.
You want to make sure your organization is doing everything it can to keep top talent. New opportunities are one thing, and it’s important for leaders to encourage employees to live out their dreams, whether it’s with your company or elsewhere. However, it’s another thing entirely when an employee leaves because the conditions or culture of an organization are unhealthy.
If companies want to reduce the massive amounts of money they’re spending on turnover costs, they need to address why talent is leaving and shift their priorities to accommodate employee needs. Getting to the root cause is key.
Old-school retention tactics such as competitive salary, stock options, and cash bonuses are not necessarily key motivators for keeping top performers anymore. While monetary incentives continue to play a role in career decisions, there are a few factors that are even more important to employees than income, including growth and healthy workplace culture.
Here's how you can tell if someone is getting ready to leave.
If you sense that something is up, and you might be about to lose a talented team member, it's time to talk.
I always say if it doesn't light you up you're not the right person for the job.
We all have different and unique needs, wants, and desires. Ensuring your team is happy, and you are giving the freedom, autonomy and resources to bring what they do best every day is the job!
Struggling with how to boost your team's engagement?
Let's Talk.