There can be no doubt that over the last few years industry across the world has suffered and only the ones who have adapted and evolved have managed to not only up their profits year by year but most importantly managed to keep hold of most of their key personnel and lost very little employees in terms of staff turnover.
Other companies have undoubtedly survived and are still going, but research has shown that the companies who have not only survived but have also shown significant growth.
In an ever-changing economy where wage increases have been below the level of inflation for many years now, people are finding it harder and harder to simply live day to day and keep up with the coast of living and always have one eye on the jobs horizon looking to improve their life styles, not only in the way of being paid more but also and increasingly, in terms of job satisfaction, and this is something that the top performing companies have begun to understand and why they differ so much from their competitors in terms of staff retention and why they show a consistent year on year increase in growth and proven staff retention and job satisfaction.
With official figure showing 526,000 workers nationally suffering from work-related stress, depression or anxiety (new or long-standing) and 12.5 million working days lost due to work-related stress, depression or anxiety in 2016/17 these figures are alarming statistics and simply cannot be ignored if you want to enjoy the benefits of company growth like the top performing companies who recognise that happy employees make better workers, and better workers put in more effort i.e. work harder, which in turn leads to more productivity and higher profits, it’s a no brainer.
Another factor to take into consideration is the cost of recruitment which on average is £3000 per employee not including training coasts.
With an Average annual turnover (churn) of 15% a company of 250 employees that would equal 22 employees which equals £66,000, a not insignificant amount I’m sure you’ll agree.
If you’re company is consistently turning over staff (churn) at a higher national percentage rate than average, (above 15%) then you’re in trouble, as these costs cannot be recouped and it all comes off your bottom line.
Google, the only firm on the list to be awarded with a 4.5 out of five rating, was described by one employee as an “exciting company” with “tons of opportunity and amazing people”. Another pointed out the positive work culture where “everyone in different departments works collaboratively”.
The same employee also remarked on the excellent benefits provided by the internet conglomerate, such as “free food, health insurance, dental insurance, travel expenses and shares”.
The rankings are based on employee reviews submitted on jobs site Glassdoor between November 2016 and October 2017, with the website using a proprietary algorithm to produce a score out of five for each company.
Companies are only included if they have 1,000 employees or more, so these are huge corporations who recognise the benefits of a workforce with high morale and who feel appreciated and cared for, which are basic human needs.
Out of almost one million employees reviewed on Glassdoor, the average company rating was 3.3 out of five.
I realise that your company may not be as large as these organisations, however, that’s no excuse not to start addressing any problems now and implementing small positive changes now!
There’s an old saying that “the smallest changes can make the biggest difference” so starting to make those positive changes now will only be good in the long term.
Simply start to put a plan into place that will fit in with your own company budget and your own culture and values, make people start to feel wanted and they will pay it back in spades in terms of increased morale, higher productivity and in turn increased profits. Changes based on key workplace attributes such as career opportunities, compensation and benefits, culture and values, senior management and work-life balance.
Monitoring staff turnover is important for all organisations so that they can respond quickly when levels reach a point that is damaging to the business
This is where HR can become so important.
Working closely in conjunction with HR to look carefully at recruitment and selection strategy – and its onboarding process. It’s important to ensure new starters receive ongoing support and attention, and have the opportunity to raise any concerns as soon as possible, as this has been proven to reduce to avoid staff churn among this group.
Losing an average of one in 10 employees before completing one year of service is not only costly in terms of resources, but also for employee engagement among those already in work.
With Employee resignations now at a five-year high at 15.5%, according to research from XpertHR this is a problem that will simply not go away.
So, to run a more cost-efficient business and increase company morale, increase productivity and therefore profitability you need one thing, and that one thing is a…
What does that happy employee look like, well in simplistic terms I’m going to bullet point them for you:
- Happiness encourages creativity.
- Happy employees are more accurate and have better analytical abilities.
- Happy employees are better at handling adversity.
- Happy employees equal lower costs.
- Happy employees are better at sealing the deal.
- Happy employees provide better service:
- Happy employees are more productive.
- Happy employees stay.
- Happy employees can be a part of a branding strategy and boost sales.
I used to work in advertising and ran a multi-media agency in Carnaby Street, and several other successful businesses over a 25-year period, and I realised then that my “employees were paramount to the success of my business” and I treated them like that.
Win their hearts and you win their minds, it’s a simple as that.
Telephone: 01572 759308