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Here are some of the top reasons employees choose to stay with their new employer – and how recruiters can help
The financial hit companies experience when a new employee doesn’t work out can be hard to swallow – the cost of replacing them is typically between 10% and 30% of that staff member’s salary. But you don’t often hear about positive recruitment metrics: the financial gain that comes with the perfect hire, or the profits accrued through talent retention.
Recruiters play their part in making the hire as profitable to their clients as possible – starting by making the recruitment process as fast as possible. Through honing their methods for assessing candidates’ skills and personalities – using digital means to cast the search wider – and staying agile when it comes to meeting new talent, recruiters keep things moving as quickly as they can in the right direction. But after a hire has been made, only time can tell whether a new employee’s job role is aligned with their aspirations and needs, how “right” they are for the company, and whether the client’s investment in recruitment is a negative or positive one.
At the same time, there are some fundamental things companies can do to make sure their employee churn rate stays at a minimum. As recruiters spend time getting to know a company’s culture before putting their feelers out to fill a role, they may want to gently advise clients about aspects that could be enhanced to make a job offer more attractive. Rather than criticising, it’s about sharing insights with them on the top reasons employees stay in a role. So what are the key ingredients for talent retention, and how should employers be measuring and using them?
Perhaps one of the biggest reasons an employee chooses to stay with their company is how much they feel they matter to their employer. Feeling like their opinions and contributions are heard and considered cannot be underestimated for building a sense of connection to their place of work. It may sound simple, but in high-pressure, fast-paced working environments, taking time to check in with employees and ask for their feedback and ideas can fall by the wayside. Rather than leaving it until the exit interview (when it’s too late), recruiters can encourage their clients to introduce “stay interviews” where time is devoted to listening to employees’ needs and concerns. It’s a meaningful act that demonstrates a willingness from a company to make employees feel heard, and that the company wants to do what it takes to keep them on the team.
As workers from Gen Z start to climb the career ladder, research shows they will want to work for companies with seamless, up-to-date technological processes. Companies that actively seek and invest in the latest software solutions for storing data, swift processing speeds, efficient communication tools – essentially, anything that helps employees get on with their job as easily as possible – will become increasingly attractive compared to those who force their staff to battle with technology day in and day out. It presents an image of being forward-looking, efficient and people-centric, and shows that a company cares about its employees’ time.
Finally, companies that offer employees relevant, attractive benefits are the ones who keep their talent in the team. When it comes to a company’s benefit scheme, rather than assuming all employees want the same thing, or sticking with the status quo (extra holiday, or free gym memberships as standard), recruiters could suggest that clients check in with current employers and actually ask them what would be most valuable. Perhaps having access to flexible workspace that lets them work closer to home twice a week is a bigger draw? The results may be surprising. But it’s useful to know. If company-benefit schemes are made more relevant to the desires of employees today – and recruiters communicate these to prospective talent – the chances of reducing employee turnover in your team is highly likely.
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