Under The Hood – Surprising Statistics About Employee Retention

“Your employees are your most valuable resource.”

If you’ve heard the phrase once, you’ve heard it a thousand times. It’s so common that it’s almost a cliché. The thing about clichés though, is that they’re actually true! There have been hundreds of studies about employee retention, but because those studies aren’t very glamorous or exciting, they don’t get a lot of press. Here are some statistics about employee retention that might surprise (and in some cases, dismay) you.

People Leave (Mostly) To Advance Their Careers

According to the latest and best statistics, career advancement is one of the most common reasons people hop from one job to another. In fact, best estimates are that 70% of employees who leave, do so for exactly that reason. The solution then, at least in this case, is simple. If you want to keep your best people, don’t stifle them. Give them room to grow within your organization, and even better, take an active hand in helping them achieve their full potential.

Employees Follow The Money

We certainly didn’t need studies to tell us this one. People want (and need) to feel as though they’re being fairly compensated for their efforts. The sad reality is that most years, annual raises don’t even keep pace with the rate of inflation, which means your employees are actually suffering a pay cut every time that happens. The latest data indicates that more than a third (35%) of employees would be willing to job hope within twelve months, if they don’t see a decent raise.

You’re More Easily Replaced Than Your Best People

Here’s one that might disappoint and unnerve you. More than half of all Americans feel confident that they could replace their job in six months or less. Given how long it takes to find top-notch employees and get them fully trained, you probably can’t say the same thing about replacing them, and that means it’s time for a serious rethink.

Culture Is Critical

While pay is obviously important, relationships matter almost as much. One of the simplest and best things you can do to improve your employee retention rate is to foster an open culture that encourages close working relationships between employees that cut across conventional departmental lines.

You, of course, are an important part of that equation, but not the only part. Yes, you should be highly visible and accessible to your employees. Yes, you should call them into your office for reasons other than a dressing down, but also, you should build your organization in such a way that you have like-minded, passionate people who are encouraged to get to know each other, regardless of their station or position within the organization.

Your employees really are your most valuable asset. Wise is the manager or owner who does everything in their power to keep the best of the best.