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2018 Employee Retention Report Introduction 3 Introduction EMPLOYEE RETENTION REPORT The real story behind why your employees are leaving for good # 2018 ANNUAL RETENTION REPORT TABLE OF CONTENTS Introduction 03 Great Managers Fuel Employee Loyalty 05 Recognition Is a Matter of Priority 07 Culture Eats Compensation For Breakfast 09 Employees Crave Work-Life Balance 11 Growth Opportunities Are Talent-Magnets 12 Launching a Successful Employee Retention Strategy 14 About TINYpulse 16 # 2018 ANNUAL RETENTION REPORT 2018 EMPLOYEE RETENTION REPORT INTRODUCTION 3 INTRODUCTION THE WAR FOR TALENT IS GROWING FIERCER BY THE DAY. What you will learn » The top five factors that correlate to employee turnover and fascinating statistics collected across hundreds of organizations that use the TINYpulse platform. » Actionable advice from leadership experts that any organization can follow to combat turnover problems or augment current growth. » Our five-step approach to creating an effective employee retention strategy. We’ll reveal how The U.S economy saw a steady rise in 2018, with you can identify the top attrition drivers in your unemployment dropping to just 3.7 percent— the own workforce and launch an effective plan of lowest it’s been since 1969. In today’s job market, action. power lies in the hands of employees and leaders must work harder than ever to retain their workforce. A summary of our key findings To uncover what factors matter most to employees The purpose of this report when deciding to leave, we analyzed survey results A study by Employee Benefits News states that the from over 25,000 employees across the world from average cost of losing an employee is a staggering January to October 2018. Our research uncovered 33% of their annual salary. When recruitment fees, five key takeaways: training and lost productivity are taken into account, a high turnover rate can have crippling financial 1. Great managers fuel employee loyalty implications for a business. We found a direct correlation between how employees feel about their supervisors and We’ve created this report to help organizations tackle how likely they are to look for employment the issue by empowering leaders to address the most elsewhere. 40% of employees that do not rate common drivers of attrition. The report builds on our their supervisor’s performance highly have popular past research and contains new findings, completely updated for 2018. Who this report will benefit Employees who rate their This report is essential reading for professionals supervisor’s performance poorly are involved in people management and operations 4x as likely to be job hunting such as C-level executives, HR departments and middle managers. Employee engagement specialists, company culture enthusiasts and anyone committed interviewed for a new job in the last three to creating a better employee experience will also months, compared to just 10% for those that do benefit from the findings presented here. rate their supervisor highly. 2018 EMPLOYEE RETENTION REPORT INTRODUCTION 4 2. Recognition is a matter of priority 5. Growth opportunities are talent-magnets The data speaks for itself: employees who feel Companies that support their employees in their under-appreciated are unlikely to stay with professional development are less likely to have their employers. According to our data, 21.5% of problems with turnover. Our findings reveal that employees that don’t feel recognized when they employees who feel they are progressing in their do great work have interviewed for a job in the career are 20% more likely to still be working at last three months, compared to just 12.4% that their companies in one year’s time. do feel recognized. 3. Employees crave work-life balance Employees who don’t feel supported Even the highest paid employees in the world still in their professional goals are 3x more leave their jobs when the risk of burnout looms. A salary raise may work effectively as a band- likely to be looking for a new job aid, but before long, overworked employees will likely start reviewing their exit strategy The results are clear: the intangible matters. Engagement, culture, and personal growth aren’t just Employees with a good work-life buzzwords. In our current economic climate, leaders balance are 10% more likely to stay and HR must address these factors if they want to grow a strong and loyal team. at their companies Combating turnover requires time and resources. once again. Employees who rate their work-life But with the right strategic approach, leaders can balance highly are 10% more likely to stay at their succeed in creating a happier, more productive work company. environment in a cost-effective way. 4. Culture eats compensation for breakfast Read on to learn how your organization can start For today’s workforce, a job is more than just a building the ultimate employee retention game paycheck - employees want to grow meaningful plan. relationships in a great cultural environment. In fact, our research shows that the way employees view their company culture has an even bigger impact on turnover than how they view their benefits package. 2018 EMPLOYEE RETENTION REPORT GREAT MANAGERS FUEL EMPLOYEE LOYALTY 5 GREAT MANAGERS FUEL EMPLOYEE LOYALTY SUPERVISOR PERFORMANCE IS Issues surrounding role definition are likely part of CRITICAL TO THE SUCCESS OF A a wider communication problem. In fact, a fear of communicating with leadership is another driver RETENTION STRATEGY of attrition. Employees that don’t feel comfortable giving upward feedback are 16% less likely to stay at their companies. Employee-manager relationships play a fundamental role in retention. In fact, many of the other key drivers Employees of attrition identified in this report fall under the that don’t feel wheelhouse of middle-management. That’s why it’s comfortable important to invest early in management training and giving upward feedback are provide continuous support to help leaders grow their 16% less likely people skills - an area that’s sorely neglected at many to stay companies. Good managers are able to effectively communicate the job duties involved in a role - a vital skill for keeping employees focussed and goal-oriented. But our research found that role definition isn’t just In addition, how employees perceive their important for productivity - it’s also important for manager’s overall ability is among the best retention. According to our data, employees are 23% indicators of their intentions to stay or leave the more likely to stay if their manager clearly explains company. their roles and responsibilities. Employees who Employees poorly rate with clear their manager’s responsibilities performance are are 23% more 4x more likely to likely to stay be interviewing elsewhere 2018 EMPLOYEE RETENTION REPORT GREAT MANAGERS FUEL EMPLOYEE LOYALTY 6 We found that 40% of employees who do not rate their supervisor’s performance highly have interviewed for a LEADERSHIP TIP FROM AN EMPLOYEE new job in the last three months, compared to just 10% ADVOCATE: for those that do rate their supervisor highly. Hiring and training for emotional intelligence Key takeaways: Heather Younger is an employee engagement expert who has analyzed responses from » Managers must be held accountable for turnover thousands of employee surveys at different within their teams. Performance evaluation at a organizations. In her best-selling book, The managerial level should go beyond the ability to Seven Intuitive Laws of Employee Loyalty, hit key business metrics, and also take into account Younger cites ‘great managers’ as the number feedback from team members. one reason people stay at their organizations. » Clear role definition is a key requirement for employee engagement. Employees that feel a lack The best managers, Younger argues, are those of direction from their managers are more likely to with strong emotional intelligence. “Ninety leave their companies. percent of employee experience is driven by » Leaders should train managers to welcome open emotions. And leaders get to choose which and honest communication. Soliciting and acting emotions they unleash within the people they on feedback from employees will help improve lead.” loyalty towards managers, and by extension the organization. Before leaders can foster employee loyalty towards their companies, they first need to cultivate loyalty towards their managers. This means hiring and training for empathy and communication skills, rather than simply technical ability. Heather Younger Founder & CEO Customer Fanatix # 2018 EMPLOYEE RETENTION REPORT RECOGNITION IS A MATTER OF PRIORITY 7 RECOGNITION IS A MATTER OF PRIORITY FREQUENT, INFORMAL RECOGNITION The effectiveness of recognition efforts overall when IS A HIGHLY EFFECTIVE TOOL FOR employees do great work has a similar correlation: employees who are inadequately recognized for high RETAINING HIGH PERFORMERS performance are almost twice as likely to be looking for jobs elsewhere. Employees who are not recognized for great work are 2x more likely to be job hunting Most workplaces include some type of formal recognition in their company cultures. Examples include end-of-year bonuses tied to performance, or a ‘years of service award’ to recognize tenure. While Recognition is important because it helps validate these more significant forms of recognition all have the time and effort we expend at work. Employees their place, it’s vitally important for managers to offer want to know that their roles are meaningful and small bursts of appreciation on a day-to-day basis. impact the success of the business, and critically, that their team members acknowledge this too. When employers fail to provide evidence that Employees they value their employees’ contributions, their who have not organizations are more likely to experience turnover. received recent Our research supports this: employees who do not recognition are feel valued at work are 34% more likely to leave their 2x more likely to companies within the next year. be job hunting Employees Our research found a correlation between frequent who do not feel recognition from a supervisor and employee valued at work retention.
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