Why employees leave and why they stay — the turnover disaster
What if I told you that earlier this decade, one large company with 1500 employees was experiencing an annual turnover rate of 89%? And most importantly, this company, indeed, estimated the direct financial costs associated with losing employees and hiring and training replacements at over $250,000 annually!
However, the good news is that in this company, the HR Managers understood the importance of exploring what turnover is and why it is important to manage it. The result by exploring the turnover phenomenon was the will to manage it and reduce the high rate.
In this business, the managers faced the challenge and hard worked to identify that the high quitting rate was eroding employee morale and customer loyalty. But overall, they reduced turnover to 35% in about one year by using research, engagement performance and techniques-based retention management –like Gamification–.
And they did because they overlooked the future and realized change, adaptability and transformation are the constants and essentials to drive and retain successfully talent in any company.
Recently, another ongoing research shows the 4 key elements to tactically drive retention: performance, communication, loyalty and competitive advantage. Despite that, most business owners and managers think retention is based on compensation issues such wage and salary levels, incentives, and golden handcuffs.
In a very recent article published in The Wall Street Journal, they noticed that high employee turnover hurts a company’s bottom line. Therefore, experts estimate it costs upwards of twice an employee’s salary to find and train a replacement. And churn can damage morale among remaining employees. And overall, human beings are often the happiest when they’re in the process of achieving a goal. Clear, achievable objectives that gauge personal, team and company performance provide the feedback employees need to confirm they’re making valuable contributions and accomplishing desirable goals. Doesn’t it sound as we were talking about applying Gamification techniques to retain talent at work? It does, indeed.
So, how your company should reduce employee turnover?
Some of the tips companies could follow to avoid increasing turnover might be the following ones:
- setting the right feedback and recognition — by applying gamification and teamwork you will increase employee morale and happiness in your workplace
- to make it easier to identify accomplishments, set your business goals through gamification — facing business challenges by playing in teams will modify how employees and managers are communicating at work
- improve the active listening among employees and managers to boost creativity and high performance with gamification — when people play, they feel naturally intrinsic motivation