Send to KindleDid you know that, according to several surveys, young employees stay with an employer for about 2 – 5 years while older employees may last from 5 to 9 years? Our society has become very mobile and the fear of changing jobs is not nearly as prevalent as it was in the past.
While you’re digesting those statistics, here’s another one. It costs anywhere from 50% to 200% of an employee’s annual salary to replace them! That’s right. The person who just walked out the door cost you a bunch of money.
Let’s look at these two statistics separately. First, what is the cost of losing an employee? That depends, of course, on the type of organization and the level of the employee, but there are several expenses to consider. First, finding a replacement. Some companies have a file full of resumes; others have to search for a replacement. When the replacement is hired, there are various expenses required to get them started. Two of the biggest expenses are training and experience. Every new employee will require some training and some will require extensive training. During the time an employee is learning the job, the lack of experience is taking a toll on productivity, both because of the new employee’s inexperience and because someone has to take the time to show the new employee the ropes.
Why are so many people leaving their jobs? Several recent surveys indicate that the number one reason people leave their jobs is that they don’t like their boss. They may be leaving because of you! Of course, that’s a pretty nebulous statement. Why don’t they like the boss? Usually because the boss isn’t giving them what they want, and or need. Most people want certain common things on the job. There is much talk about the motivations of the different generations, and there certainly are differences. More importantly, there are also similarities. The first of these is respect. Workers want to be respected for who they are and what they contribute. Here’s where the generational difference comes in. While a Baby Boomer might accept a lack of respect from their boss, younger workers won’t. Some are already looking for an excuse to move on.
Humans seem to be hard-wired to win. The trend to not keep score at young people’s sporting events is a good example. While some adults thought such a policy would be good for a child’s emotional development, they didn’t consider the child’s innate desire to win. Even if the parents weren’t keeping score, the children were. They wanted to win! A good leader will leverage this desire to win.
Along with this need to win, most people want to be part of something. It’s true that some work better in a team setting than others, but the vast majority of people want to be a part of something that is successful and worthwhile. They don’t just want their name on the roster though. They want to know that both the leader and the group appreciate their contributions. It all comes together with a winning team of which they are a valuable and recognized contributor.
It costs money to lose an employee. If you’re losing a lot of employees it costs a lot of money. That means it’s much more cost effective to treat the ones you have with respect and keep them working for you.
