Are You at Risk of Losing Staff in the New Year Exodus?
January signals the start of all things new and for many individuals this means jumping ship on the job front. Statistics clearly show that January is by far the most mobile time for job seekers. According to LinkedIn more than twice as many people changed jobs in January 2018 as compared to December 2017. The data speaks for itself and is a true reflection of our experience with candidates and clients at Gaulter Russell Numero over 25 years plus.
How worried should you be?
We’ve all heard the horrifying statistics on the tangible and intangible cost to businesses when people leave, in fact the general rule of thumb indicates that losing a staff member employed with your business for 12 months or more can cost you three times their salary to replace. To begin with you’ve got leaver exit costs, then recruitment, on-boarding, training, management and ongoing development for the new starter.
Other impacts can be wide reaching across the entire business, specifically:
- Impact to Productivity and Profit – significant loss of expertise, drop in productivity and as a result, revenue, as it takes a new employee one or more years to reach the output of an existing incumbent
- Cultural Impact - disruption to team dynamics, increased stress levels and low morale for remaining staff, resulting in decreased engagement. Remaining employees witnessing the high turnover tend to question why this is occurring and then become seriously demotivated by it.
- Customer Dissatisfaction and Defection — high staff turnover does not send a good message to the market and can impact customer relationships and delivery, particularly as new employees take time to come up to speed and whilst doing so are potentially less adept at solving problems and cultivating those all-important customer relationships.
How do you limit the leavers?
A plethora of information exists around retention and engagement to ensure decent tenure and successful business outcomes, and there is undeniably significant value in making sure you have the right strategies, programmes and benefits in place to help ensure you have the most engaged team who are willing and committed to sticking around longer term.
However, in our considerable experience what underpins all of this good stuff is communication – if you are not actively engaging in the right conversations regularly with your staff throughout the year, how can you possibly know where their head is at, how content and dedicated they are, or conversely whether they already have one foot out the door and come the New Year intend to abandon ship?
So how do you put it all together to best safeguard against and ultimately avoid unexpected New Year resignations? Let’s start at the beginning; accordingly to LinkedIn the top three factors for job seekers are the opportunity for professional development (56%), compensation (49%) and a better work / life balance (29%). It naturally follows that those three factors remain of critical importance once these individuals are ensconced in your business.
Equally as important are:
- Strong Positive Culture – this always begins at the top. When your management team demonstrates integrity, respect, open communication, a positive attitude and a hard working philosophy, this naturally flows to the rest of your employees. Without it no one will stick around, particularly the newbies when the sparkle of their new job fades
- Recognition – this can be as simple as acknowledging someone’s efforts, saying thank you for a job well done or a much more formal recognition programme, including incentives such as gift vouchers, travel, spa days, time off etc. Ensure your staff get a say in what would be valuable to them
- Creative staff wellbeing benefits - things such as providing staff birthday leave, birthday vouchers, charity days, free parking, thank you gifts, weekly fruit baskets for the office, additional leave days
- Exit Interviews – when the inevitable does happen, take the opportunity to really listen to what your staff say to uncover any areas you need to address before you can attract new people to join your company and remain for the longer term
- Conversations / Meetings / Catch-Ups / 1:1’s – whatever you want to call them, just make sure they happen, and on an ongoing basis. Regular meetings upon commencement in particular are critical to ensure the new staff member is settling in well, integrating with the team, understands their responsibilities and that they are happy that the job is what they thought it was going to be.
Implementing these initiatives and having the right conversations to keep the communication channels open, honest and productive is vitally beneficial for all parties. It’s a no brainer that happy staff who enjoy their role, team and company display significantly higher levels of engagement, are far more productive and are more likely to stay put for the long haul.
What if you get it wrong or your staff decide to jump ship anyway?
So what happens if come the New Year you are blindsided by one or more resignations from staff set to walk out the door. Unfortunately that’s life, even with all the best laid plans there are no guarantees – so what now?
This is where we come in. With our access to a steady pipeline of skilled talent we can provide a contracting resource to fill the immediate short term gap you might find yourself with, buying more time whilst we work through the permanent recruitment process with you.
In our experience partnering closely with our clients, one of the biggest challenges to growth for our clients is finding the right people and then retaining them. We work to ensure the right person is sourced at the outset, assisting our clients to scope their exact business requirements through our consultative and partnership approach. Testament to this philosophy we have successfully placed over 10,000 contract and permanent roles to date, with a Net Promoter Score (NPS) for the last 12 months sitting at 74.5 (versus recruitment industry average of minus 25), and an incredibly low drop-out rate.
We effectively help take the pain out of recruitment for your business year round, whether it be a short term fix, a permanent solution, or both that you require.
Do you have a sales or marketing role that you need help with? Please contact us today for a confidential chat.
Written by Rachael Lewis-Green, Operations Director at Gaulter Russell Numero.