In talking with DH clients and businesses interested in culture, one of the biggest pain points in their growth is attracting and retaining talent. Workplace trends are changing faster than ever. Just thirty years ago, a traditional 9-5 office culture was as good as anyone could get! Nowadays, a startup-like environment reigns in competitive markets. How can businesses keep up with what the best talent want while still maintaining a productive and profitable bottom line? Watch this video and read along as we take a deeper dive into attraction and retention:
In the U.S., the percentage of employees voluntarily quitting their jobs is at an all-time high. People are leaving faster than businesses can hire great talent. Not only that but it’s harder now to stand out to candidates. Your talent pool has more choices than ever, while your business is limited in what it can offer. Employees are more confident than ever in what they want beyond compensation and cool perks, and they won’t hesitate to go after it.
Some consultancies will suggest you first focus on your benefits and compensation packages or for you to take a closer look at the ease of your recruiting process. These are all great suggestions, but the truth is that if your workplace culture isn’t engaging, no one is going to want to take the leap and work for you. And if they do, they won’t stay long.
How do we know?
According to a Work Institute’s 2018 Retention Report analysis on 234,000 exit interviews, about 40 percent of employees left within 12 months of being hired.
On the flip side, if you have engaged employees, they are 59% less likely to look for a job in the next 12 months. And this is a very thin line, a key factor in every organizational change is the way you empower your managers to be leaders and coaches. The first and most important connection to develop and maintain engagement is between employees and their managers. Managers can nourish company loyalty or make employees quitting decision even easier. Research shows that managers account for at least 70% variance in employee engagement scores.
Whether you define it or not, your organization has a culture to it, and your candidates can feel it through the recruiting process [especially during the in-person interview]. It’s not enough to put your best face forward during recruitment because your new hires will be able to look past all the bells and whistles to see what your company is really like. That’s even worse because you’ve already spent time and money to recruit them!
Research over a 15 years shows that the average cost of turning over a skilled job is up to 213% of one year's salary for that role.
What is happening is that organizations can keep their new hires happy for a while, but just to be clear: happy people aren’t necessarily engaged. And this is because it is an inside-out and a two-way process. People show up for what they believe in, what is meaningful. They look for a place that develops their strengths and allows them to live their purpose through work. People will go above and beyond if there is alignment between their individual and organizational culture.
It sounds like a lot of work, and it is! We have seen that successful culture cases follow a ME [individual]-WE [team] -COMMUNITY [partners, vendors, clients, the world] approach have a positive impact in terms of engagement and not only that, but a culture of co-ownership. WHY? It all comes down to two words: care and trust.
How can culture affect your bottom line? Find out how culture can help you reach your business goals: