Organizations invest a lot in their people. From hiring and training to compensation and benefits, a lot of time, resources, and money is invested in employees. They become valuable resources, holding expert knowledge about their job and your company, and they gradually become more valuable as they perfect their efficiency and effectiveness in their role.
So when they leave, it hurts. The Center for American Progress estimates that losing an employee can cost up to 213 percent of the employee’s salary.
A variety of strategies can be implemented to increase employee retention. One is to implement an employee engagement program that starts with collecting employee feedback, measuring engagement, and developing initiatives to increase engagement, which will lead to higher retention.
This year, Quantum Workplace set out to determine just how powerful engagement is as a predictive measurement of turnover. The results were telling. Gaps in engagement between exiting employees and retained employees occur in every aspect of the study.
Hostile, or actively disengaged, employees are 3.6 times more likely to leave than engaged employees. Of the employees in the study who measured as hostile, 36 percent left within the next year. Of the engaged employees, only 10 percent left.
Employees at Risk for Turnover in 2013
Using the average engagement score of the departed employees as a guideline, the study found that 28 percent of the remaining employees are at risk for turnover in 2013.
Differences Between Exited and Retained
Gaps between the two groups exist in every area of engagement. For example, departed employees are four times more likely to not be thinking of ways to do their jobs better. In addition, 18 percent of exited employees didn’t feel recognized or see opportunities for career development and professional growth.
So how can we use engagement to predict turnover within our own organization and develop tactics to reduce turnover? Collecting employee feedback on a regular basis through a survey is the first step. The first year serves as a baseline. The second year is really where you start to see opportunity for analysis.
By leveraging your organization’s data on departed employees, we can evaluate how engagement differed between those who left and those who stayed. Through more analysis, we can determine which areas within your organization may be at greater risk than others for turnover in the next year.
By pinpointing engagement drivers and understanding opportunities for improvement, you can take the next steps to make a solid plan for retention. By combining engagement data with exit interview or exit survey data, you can dive even deeper to truly understand why people leave your organization and what you can do to prevent it.