In the first quarter of this year, LinkedIn surveyed over 26 thousand members worldwide to learn more about 2016 Global Talent Trends and How Candidates Want to be Recruited. One of the survey takeaways that we wanted to discuss was the trend of increased employee turnover. Yes, turnover is increasing but not to worry, we’ve got some tips on how to recruit loyal employees and how to get them to stay.
The days of staying with a company long-term has been dwindling for over a decade if not longer. Back in 2014, U.S. Bureau of Labor Statistics reported that “the median number of years that wage, and salary workers had been with their current employer was 4.6 years. That number decreased to less than half that with younger workers.” Two years later the LinkedIn talent trends study reported that the employees were leaving their current employer even sooner. According to the LinkedIn study, “over forty-percent are less loyal and expect to leave their current company in less than two years. Thirty-one percent are a bit more loyal and say they’re considering a move in less than three years while twenty-two percent are unsure.”
So what’s that mean for a company and their future recruiting efforts? Based on those stats, it means that companies can expect to pay more in turnover. In 2012, CAP (Center for American Progress) released a study stated that for “low-paying jobs 16% of annual salary for high-turnover, low-paying jobs (earning under $30,000 a year). For example, the cost to replace a $10/hour retail employee would be $3,328.” Those figures increase significantly for managers earning up to $50K annually and more extensively for executive-level salaries. In order for a company to estimate their turnover cost, they should create their own formula based on recruiting costs, lost time without employee, project impact, training, etc… Understanding your turnover rate is crucial to put a better recruiting and retention plan into place. Employees don’t just want to be recruited better; they expect a better work environment—something that makes them want to stay.
Tips to Recruit Loyal Employees & How to Get Them to Stay
1. Recruit Purpose-Oriented Professionals: The first tip for recruiting loyal employees, according to the study, companies should “recruit purpose-oriented professionals who will likely stick around longer. These are people who find personal fulfillment in their work and want it to have a greater impact on the world.”
2. Determine Employee Satisfaction: To determine how loyal your employees are; companies need to start surveying them. Your results will provide you with a foundation on where to start improving and provide insight on what employees want.
3. Improve Employee Training & Development: When companies invest in the training and education development of their employees, it inspires loyalty. It also improves recruiting efforts when candidates can see there is an opportunity to train within a company.
4. Pay Employees their Worth: Employees expect fair pay based on their worth. If a company doesn’t make this a priority, it’s the fastest way to gain disloyalty and the easiest way to lose a potential candidate.
5. Hire Employees Who Fit your Corporate Culture: Creating a strong corporate culture is essential today. A successful corporate culture can improve a company’s recruiting efforts and overall employee retention. But to improve both, a company must try to hire employees who fit well within their corporate environment.
6. Create a Mentor Program: A mentor program helps build stronger more effective employee relationships. When employees are more engaged with other team members, they are more loyal and more likely to stay.
7. Deal with the Bad Managers: Bad managers happen at every level. The reality of a bad manager is they can create long-term distrust and dissatisfaction among employees. Companies must either retrain their bad managers or get rid of them, period.
Finding loyal employees can be done. It just takes a commitment from all stakeholders within a business. Making the right adjustments now for your employees and future candidates can save a business substantial dollars in the future. If you’re struggling with hiring and keeping your employees, you may need to work with a reputable recruiting consultant for help. Contact us at 847-619-1600 for a free consultation. We’d love to help.
Image by: FabyGreen
ABOUT THE AUTHOR, Ingrid Moore
Ingrid Moore is the Founder and CEO of Corporate Resources of Illinois, an employment & staffing agency with over 20+years’ experience located in Schaumburg, IL. Ingrid and her team assist employers with finding the right hire for their business. For more info, follow us on our LinkedIn Company Page, or follow us Corporate Resources of Illinois‘s Google+ page.