We’ve written several entries on employee engagement lately. We believe that engaged employees are a vital to world-class organizations, as they tend to be more committed to helping the organization achieve its vision.
A recent article points out one of the other advantages of having a high degree of employee engagement – it will decrease employee turnover.
Concern about the economy in recent years has forced many people to stay in their current jobs. As things continue to improve, employers will need to be more aware of the factors that will make people want to stay.
A recent article in Business News Daily discusses a recent study conducted by the Hay Group, a global consulting firm. Their study of over 1.6 million U.S. workers from 153 employers found 38% of employees plan to leave their current employer within the next five years. This is up from 30% in 2009. They conclude the restlessness stems from a direct result of lack of engagement.
The article quotes Mark Royal, senior principal at Hay Group Insight, who reported, “We’re in the eye of a turnover hurricane that has lulled many companies into complacency. In the meantime, employee frustration is rising. Organizations that fail to identify and act on issues affecting employee commitment during this break in the storm are going to find employees exiting in increasing numbers as other opportunities become more plentiful.
“The key to retention is enablement,” Royal continued. “Over time, engaged employees who are struggling to get things done may either stop trying — or vote with their feet and leave.”
Considering the high costs associated with recruiting and training new employees coupled with the loss of organizational knowledge and experience of those who leave, employers need to consider ways to retain employees. Bear in mind the employees who are most likely to be successful in securing new employment are the best and most knowledgeable.
This study reinforces our belief that employee engagement is in the best interest of employers and employees. Ask yourself the question, “What can we do to increase employee engagement?” If you are not sure or want to discuss ways, contact CALMC.