When you’re in a situation where someone isn’t treating you the way you want to be treated, you’re more than likely going to walk away from them and that situation (probably after some exchanging of words).
That’s the same reason people quit their jobs.
A good foundation for understanding the relationship between company culture and the happiness of an employee – and their reasons for staying (or quitting) – is the Golden Rule. It’s an ethical principle that recommends treating others the way you would want to be treated.
It’s a pretty good rule. But it’s not great.
An even better rule to consider is the Platinum Rule: treat others the way they want to be treated. When you treat your employees the way they want to be treated, they will be much happier in your company – and will want to stay there for a long time.
But when your employees aren’t happy…well, what would you do in their situation?
After nearly 35 years in the marketing and advertising world, we know a thing or two at DeanHouston+ about building a strong company culture and how to keep employees happy. For some useful tips on employee retention, keep reading!
Quit And Never Look Back.
Here are the facts:
- 50% of people quit their job because of a bad manager
- 79% of people quit their job because of a lack of appreciation
- 80% of people will look for a new job after only one terrible day at work
But that’s not all.
People will leave their jobs for a variety of other reasons, including poor onboarding and training, bad coworkers and simply not connecting with your company’s mission.
And companies maintaining their employees – or employee retention – seems to be getting worse.
In 2022, the turnover rate was 10 times higher for employees in their first year, with 50% of employees believing they can find another job within six months, 20% of turnovers happening within the first 45 days of employment, and 30% of employees quitting within six months of employment.
Of course, all of this causes companies plenty of financial woes.
For example, replacing a trained employee can cost a company more than 200% of their salary. In 2022, 60% of CFOs reported their employee turnover rate had increased within the last three years. It’s no surprise that experts predict that by 2030 the U.S. will be losing $430 billion annually due to low employee retention rates.
However, despite employee retention rates becoming an increasingly bigger problem, there are a number of ways you can improve your company culture to keep your employees happy in your company.
Happiness Is A Great Reason Not To Quit
In a world where millennials are known as the “job-hopping generation” and employees will not hesitate to leave their current position for 20% more pay, it’s important to do the most possible to keep your employees happy.
But what can be done when there’s so much stacked up against employee retention?
Well, this is what we’ve discovered:
- Better company ethics and improved transparency can increase retention rates by 30%
- Employees that are well-engaged are 75% less likely to search for another opportunity
- When there is a good onboarding experience, 69% of employees are more likely to stay
- When the onboarding involves e-learning, retention rates can increase by up to 60%
Simply, improving your company’s culture can help your company retain employees. It seems like common sense, but of course, it’s one of those things that’s easier said than done.
Let’s assume you have the greatest organization with the highest morale and the best company culture. Some of your employees will still choose to quit for a variety of reasons that may have nothing to do with your organization. This is why an employee retention rate of at least 90% is considered to be good in most industries, especially in marketing.
Regardless of the cause, it’s important that your company understand the reasons why your employees are leaving.
Because you can’t fix what you don’t know is broken.
Employee engagement software and exit interviews are great ways of gathering feedback from your employees. Employee engagement software acts like virtual comment boxes for current employees to continuously share their feedback, while exit interviews provide an opportunity for employees who are leaving the company to openly share their feelings and thoughts. Both of these methods allow your organization to recognize and understand all the ways they can improve their company’s culture.
In the end, treating your employees the way they want to be treated will keep them engaged, appreciated and happy – wanting to stay with your company for a long time.
At DeanHouston+, we continuously follow the platinum rule with our own team – and our clients. So if your company is looking for marketing expertise and you’re ready to be treated the way you want to be treated, reach out to us anytime.