Retention is the #1 challenge facing most companies in 2018. It’s disruptive, expensive, and detrimental to productivity.
According to a recent report by the Hay Group, the turnover rate for 2013 to 2018 will average 23%, with 192 million people leaving their current employers in this year. According to talent acquisition marketing expert Maren Hogen:
- A third of new hires quit their job after about six months.
- A third knew whether they would stay with their company long-term after their first week.
- And a third of leaders at companies with over 100 employees are currently looking for jobs.
And the technology industry is suffering the most.
LinkedIn’s analysis of half a billion professionals found that the highest separation rates come from technology (software), followed by retail, media and professional services.
A quick look at the top ten tech companies shows just how dire the situation is: Facebook boasts the highest retention rate, with employees serving an average tenure of just 2.02 years. At Amazon it’s just a year, and at Google it’s 1.1 years.
High attrition can have a huge impact on an organization’s bottom line. Considering the fact that separation can cost anything from 50% of an entry-level employee’s salary to over 125% for senior or technical specialists, it’s no wonder that 78% of business leaders rank employee retention as important or urgent.
But before we can make any progress in solving the problem, we need to make sure we really understand it.
Why are they leaving?
LinkedIn’s survey of 10,000 job switchers found that the top reason for leaving is a lack of career opportunity. This is followed by poor leadership, and an unhappy environment/culture respectively.
In the technology sector in particular, employee turnover is being driven by increasing demand and the correlating increase in compensation. Data analysts, UX designers and software engineers are in extremely high demand, with embedded software engineers receiving the most InMails per person in North America.
A quick look at turnover in the other two industries shows that both retail and media organizations traditionally expect high turnover (due to the seasonal, low-level nature of retail jobs as bricks-and-mortar stores transition to e-commerce, and the project-based nature of many media industry jobs).
The good news for HR leaders in the tech industry is that high attrition is completely avoidable.
Planning to prevent turnover
Long-term employee retention requires a robust strategy to ensure that employees have lots of opportunity for advancement and internal mobility, feel listened-to by senior management, and fit into the organization’s culture. Simply offering unengaged employees more money won’t cut it.
Companies that enjoy the lowest attrition rates in the sector have invested in retention. Best-practice retention strategies start with integration. This includes regular mentorship, introductions to senior management, invitations to diversity initiatives, 360° performance reviews, real-time feedback, and the creation of a career advancement road map.
Retention software – taking the hassle out of looking after your people
The Employee Integration & Retention Platform from vi is designed to help busy HR leaders implement best-practice strategies across offices, geographies and practice areas. It plugs into your existing platform to help you structure tailored integration and retention pathways for all new hires.
The platform offers a best-practice program out of the box, which you can tailor as needed, or you can input your own road maps.
Want to learn more?
We’d love to take you through a short demonstration of our Employee Integration & Retention solution. To book a time, just follow the link below and leave your details.