This year, Glassdoor Economic Research analysed more than 5,000 job transitions listed on CVs, finding the average turnover rate of employees to be 19%, with 12% being voluntary. Employees were also found to change jobs on average 15 months, costing employers 33% of the workers annual salary to hire a replacement.
In order to retain employees in an era of shortening job tenure, and therefore save time and money, employers are being forced to turn to internal initiatives, benefits and perks to ensure they remain competitive.
Retention starts at recruitment. Although attracting, screening, and hiring the right candidates is no easy feat, quality candidates who are informed about important aspects of working at your organisation are more likely to get hired. What’s more, once an informed candidate becomes an employee, they’re more likely to last and be productive and engaged. 88% of hiring decision makers agree that an informed candidate is a quality candidate.
Equality and Diversity
Creating a diverse and inclusive work environment is essential in order to compete for top talent amidst changing demographics. Statistics point to the business benefits of diversity and illustrate how the working population is changing in terms of gender, age, race and ethnicity.
Increased attention on gender issues in the workplace along with more varied gender roles at home have led many companies to reconsider parental leave policies. Eligible fathers receive two weeks of paid paternity leave, and now also qualify for Shared Parental Leave (SPL) Policy, which allows new dads to share parental leave with their partners. Despite this, a survey found that it’s not financially feasible for most couples, with less than 1% of new fathers taking advantage of the policy. In addition, almost half of British mothers report returning to work sooner than they would like to after having a baby. Although 47% of these women said it was due to worries about job security, reasons for both male and female presence at work could be explained by financial worries, as a result of less than half (48%) of businesses providing greater support beyond the statutory minimum to their employees.
Paid Time Off
The always-on nature of work has contributed to a decline in annual leave usage. Unused holiday time not only hurts the economy due to lower holiday spending, it perpetuates a culture of burnout, ultimately reducing employee productivity. 67% of people feel greater job satisfaction after taking holiday and recharging and 66% of people feel more productive after taking holiday and recharging. The antidote to this for employers to create a competitive annual leave policy and also a work culture that encourages and supports time off.
Healthy and happy employees are the backbone of any business. Employers that encourage wellness through a range of health, fitness, nutrition and stress-management offerings create a culture that encourages productivity and reduces health care costs. 77% of organisations indicated their wellness programme was somewhat or very effective in reducing health care costs, and 88% rated their wellness initiatives as somewhat or very effective in improving employees’ health.
In the changing landscape of recruiting and HR, it’s critical to keep one eye on your own internal data and the other on the trends shaping the industry at large. Doing so will help you better understand the concerns and behaviours of employers and employees around benefits and perks, paid time off, parental leave, and diversity and inclusion.
If you would like any support or advice as to how to retain your employees, or would like any information about any other HR issue, contact us at aspire cambridge on 01223 855441.