Reduce turnover and increase engagement

How To Reduce Turnover By Increasing Engagement

Stagnant engagement directly correlates to retention issues that don’t seem to go away. The two metrics go hand-in-hand. Identify a company with retention struggles and more than likely their employee engagement statistics are stagnant or declining.

In order to retain talent, engagement rates clearly need to be improved.

OC Tanner states that retention issues:1

  • Cost employers a person’s salary 150% to replace each employee that leaves the organization (250% if that person is an executive).
  • Result in vacating knowledge that is not easily or cheaply replaced.
  • Obliterate momentum toward reaching corporate-wide goals.

Despite keen awareness that retention and engagement are connected, companies are often left guessing at ways to make significant change in either.

The secret most managers fail to identify is the need to understand what drives an employee to become more energized at work and the unique motivators of each individual on the team. When employee motivators are identified and understood, effective efforts to increase employee engagement and, in turn, improve retention rates can begin.

Ways to increase engagement to improve retention rates

By understanding what motivates each employee, crafting tailored communications that tap into their unique motivators is key. When communications are written or vocalized in a way that’s structured to energize and motivate the workforce, interest and excitement can be ignited.

Contrast that with typical one-size-fits-all communications that often leave most of the employees feeling like “they don’t get me” or “this doesn’t apply to me”.

Communicating frequently is also important, especially if there are employees working remotely. Open and consistent communications help employees feel connected and able to see how their work contributes to something much bigger.

When employees “clearly know their role, have what they need to fulfill their role, and can see the connection between their role and the overall organizational purpose,” says Jim Harter Ph.D., a chief scientist at Gallup Research, that’s the beginning of a recipe for creating better engagement and retention.

Additional ways motivators help retention improvement

As mentioned in an earlier article, understanding motivators can also aid in making improvements with job performance and proper workforce alignment. When individuals are working on projects that are highly motivating, they’re more likely to stay.

Similarly, when the team and context within which they’re working is a proper “fit” with their motivators, they’re set up for success. Employees otherwise grow frustrated by wanting to perform, but are left feeling like their work environment is inept or unable to support that desire.

In summary

Ultimately, increasing engagement through motivators helps improve retention in three ways:

  • Improves engagement and reduces voluntary turnover
  • Minimizes the cost of new hires
  • Improves the overall engagement of the workforce

Learn more about improving retention by increasing engagement

Read more about this topic and better understand how to retain more employees by improving employee engagement. Download the whitepaper, Why Employee Engagement Isn’t Getting Better.

Sources:
1. Span, Scott, “5 ways to increase employee retention and reduce turnover” A Magazine by OC Tanner, August, 25, 2014
2. Baldoni, John, “Employee Engagement Does More than Boost Productivity,” Harvard Business Review, July 4, 2013