On average, companies have a 13% attrition rate each year.
Replacing an employee can cost 2x the annual salary.
So, for a company with 100 people who make an average of $80K, the cost could be over $2M/year.
Retention matters.
Boston Consulting Group conducted research that found:
“Most company leaders simply aren’t thinking deeply – or strategically – about whether their employees find their work interesting, rewarding, or fun.” – Boston Consulting Group
One of the charts from the study showed how employee responses when considering leaving a company shift over time from rational to emotional.
They start, prior to leaving, with a focus on rational reasons. With the top 3 listed as pay/compensation, benefits & perks, and hours/work-life balance.
When they looked at the needs correlated with attrition pay/compensation dropped from #1 to #15. Instead, the top 5 were all emotional needs based. The top 3 were feeling like I have job security, feeling fairly treated & respected, and doing work that I enjoy.
The insights and content from this report point to the need to find ways to understand what brings employees joy at work.
“Leaders need to roll up their sleeves and identify what’s standing in the way of their employees’ enjoyment of work.” – Boston Consulting Group
My Perspective
As I look at this information, the need for employee journey maps rises in my mind.
Understanding at a deep level what employees are thinking, feeling, and doing is key to designing programs that address concerns and ensuring everyone is working at their best.
Solving the challenges will aid with retention and likely also drive profits and productivity.
Your Turn
What do you think drives the shift from rational to emotional reasons for leaving?
How could employee journey maps help your team understand barriers to joy at work?
Does the leadership team at your workplace have a good pulse of what employees are thinking?