In the last year 2015, employee attrition rate in IT companies have increased to a startling 18% and in startups to a massive 21% at the junior and middle management level. For most IT companies it’s the highest it has ever been in the past two decades. Even some of the major e-commerce firms have lost most of their top management in the past year. With salary not being the underlying factor, companies are struggling to retain their talent.
What drives an employee to come to work every day? With Gen Y employees stepping in to corporate, HR’s should understand what would make these employees stay with their firm for a longer period of time. With different generation of employees working at different levels, managers find it impossible to keep everyone happy. Some of the most common reasons why employees quit their jobs last year are lack of motivation, appreciation (78%) from their immediate managers and unclear KRA’s.
Appreciation has always been the secret simple ingredient to keep your employees motivated and strive for more every day. Your employees are always your first brand ambassadors for your company. Happy employees have high levels of enthusiasm and bring more business for your company. It also increases the overall productivity among teams and improves engagement scores and daily performances of an employee.
Recent studies on employee retention have also studied that the retention rate of employees referred by current employees is 46% which was significantly higher than retention rate of employees hired from career portals which was 33%. Employees who feel appreciated refer others from their social circle to your company. Studies have also shown that employee turnover can be reduced by 28% by creating a happy employer brand.
Some of the most common questions from managers have are
Question 1: Is one day enough to express our sincere appreciations?
Although it’s necessary to celebrate “Employee appreciation day” this one day isn’t enough to convey it your employees. Managers should plan a list of activities across the year. And yes make a big deal out of it so your employees understand how truly you mean it.
Question 2: How we appreciate them/create a happy employer brand in the organization?
We have worked with many organizations and here are some exciting ideas which you can also use to make your employees happy.
A Party. Employees love parties. Have a small party within your office premises with good food and beverages with some loud music and cakes and tell thank you for all your hard work. Office parties also give them time to interact with other teams and colleagues.
Lunch/Dinner. Team lunches or dinners have always proven to increase morale between employees. The manager should also definitely be part of the program and convey the achievements of the team etc.
Time Away.Reward your employees with some time off specially your middle level managers & senior managers. Gift them some exciting vouchers for planning a getaway and have some family time to re-energize themselves once in awhile.
Family Day. Host a family day program and invite employee families for an evening of fun and good food.
Feedback. Take your employees for a personal cup of tea and let them open up about what they would want to change in the organization to create a better environment and implementing this changes will be boost the confidence and encourage the employee to strive more for the organization.
Career Break. Give your full time employees who have completed 2 or more years with your company, a long term off up to 6 months for anyone who is taking up higher studies or trying out a new business idea or have to take care of a sick family member.
Wellness Programs. Create health awareness programs for your employees & their families to adopt healthier lifestyles. Gift them fitness & spa vouchers or diet programs to improve their overall health.
Higher Education. Provide financial assistance for your employees who are willing to take up their higher studies. Setup weekend programs, certificate courses and professional development programs to help them pursue their dreams while working.
Turnover is inevitable. No one company has had a 100% employee retention rate. But implementing the right employee recognition programs can help you build a great employee brand for your company and reduce the rate of attrition in the long run.