Make Employee Retention Your New Year's Resolution

Make Employee Retention Your New Year's Resolution:

It’s the start of a new year and companies are extremely motivated to get off to a great start. Business leaders, fresh from their holiday vacations, are eager to grow their companies and improve upon last year’s numbers. The productivity in the first quarter will set a company up for the entire year. However, many companies lose productivity during the first quarter of the year due to employee turnover after the holidays.

According to the Department of Labor, employees are most likely to quit their jobs in December or January, in comparison with other months. Nationwide, 3.2 million people left their jobs last December—that was the highest number in 16 years, dating back to January of 2001. Additionally, a study by Glassdoor found that 1 in 5 employees cited January as the best month to make a career change.

Why do the holidays spark an increase in turnover?

One reason companies see an increase in turnover around the holidays is that other organizations ramp up their hiring in the early months of the year, so people are more likely to learn about open positions in their field. Another factor might be holiday bonuses being an incentive to work until the end of the year. Then, unfortunately, resignation letters follow these bonuses in quick succession. Additionally, the beginning of a new year sparks inspiration for many to reinvent themselves, and this may include getting a fresh start in a new job.

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How to Prevent New Year Turnover:

1. Keep Employees Engaged

To retain employees going into the new year, they should be welcomed back with empowerment, enthusiasm, and exciting goals to work toward. Make sure to start the new year off by showcasing any exciting changes, projects, or goals that emphasize the company’s culture and values, so employees are reminded of what made them excited to join your company in the first place.

Be sure to keep this positive momentum top-of-mind as the year progresses. A 2014 Gallup study declared that unhappiness and disengagement among employees cost the U.S. at least $450 billion per year. Employees who are mentally checked out are detrimental to the success of a business and cost the company, even more, when they eventually resign. Throughout the year, never stop looking for opportunities to recognize employees for exceptional work and encouraging greater work-life balance.
2. Grow The Team

If employees are stressed from an overbearing workload, hire more people to join their teams. Take advantage of the many people looking for a fresh start in January and February and bring in some extra help for the employees you are hoping to retain. Employees will be encouraged to see that their amount of work is noticed and help is on the way.
3. Promote Professional Development

Companies that encourage professional development among their employees experience 30-50% higher engagement and retention rates. Whether it’s through online courses, conferences, or mentorship among coworkers, implementing a culture centered around professional development has shown to be beneficial for employers because it increases employees’ knowledge, and keeps them motivated and engaged.

Be prepared to adapt quickly

Make it a company goal this year to be prepared for any turnover, whether it happens in January or July. The cost of a vacancy will slow down your business and your employees. Prevent losing money and the risk of losing more employees from burn-out by quickly filling vacant positions with candidates who fit the role and your company. To prepare for the possibility of new year’s turnover, or turnover at any time, talk to our firm and we’ll find the perfect fit, fast.