Previously I have discussed the phenomena of millennials staying at their place of employment for on average 1 to 2 years before moving on to somewhere new. The reason for this being this generation have a different set of priorities to the generation before them. Previous job hunters have sought stability from potential employers, but this generation seek purpose, personal growth, and progression. Once they have learnt everything they can from their current employer they are ready and set to move on.
It is clear retention will be a problem for employers of the future. Should organisations accept long term loyalty is just not in the nature of the current generation and get ready to settle into a loop of continuous re-recruitment. Or should organisations be adapting their processes to accommodate the younger generation’s needs, with the chance of holding on to them a little longer.
I have compiled a list of the possible merits of focusing energy on retention rather than re-recruitment.
1. By retaining employees you are keeping staff that can already do their job. Usually the longer someone has been with you the more experienced, knowledgeable, and efficient they become.
2. When employees leave they take away knowledge gained from working at your business to your competitors.
3. It takes new employees time to adapt, and energy for co workers and managers to help them. This equates to loss of productivity while the new employee gets up to speed.
4. There are big expenses – job role advertising costs, recruitment costs, interview costs, and training costs.
5. Your current employee’s performance is reliable. A bad new hire can have potentially fatal consequences – loss of productivity, lost clients, lost money, lost business, even loss of your best employees. It’s a big risk.
6. Employees develop relationships, figure out styles of working together, and build up a sense of community. Workplace community and culture can be one of the most meaningful aspects of a job. A constantly evolving workforce means group spirit and sense of community is likely to take a hit.
7. The longer an employee has been at a company the deeper their loyalty to the brand grows. Loyalty can equate to company endorsements, by word of mouth to friends and family, and via social media.
8. The longer an employee intends to stay at an organisation the greater their drive to suggest improvements and to work to better the organisation.
9. High turnover of employees looks bad to clients; Clients like consistency in who they deal with at a company, and look fondly upon organisations they perceive as having long term, committed, happy employees.