In recent years, the number of employees who do not feel appreciated at work has grown, and that could be a big problem for companies. When employees are dissatisfied for long enough, they’re more likely to look for another job, which means employers are stuck with high turnover and on-boarding costs.
Related: Retain Top Talent in 2019 [Guide]
The Cost of Disengagement
Cost is a big concern when employee engagement and loyalty rates are low. Disengagement costs the economy as much as $350 billion per year in lost productivity, including higher rates of absenteeism, illness and low morale issues.
If engagement is ignored long enough, employees may leave in pursuit of other jobs. The result: $11 billion is lost annually due to employee turnover.
These findings of a Gallup survey report highly engaged business units realize a 41% reduction in absenteeism and a 17% increase in productivity. Engaged workers also are more likely to stay with their employers.
With more people on the hunt for jobs, organizations must ensure their engagement and retention strategies are sound and stand out from competitors.
Meaningful Work, Not Just Money
Many employees refuse to settle for an organization that does not strategically prioritize engagement. For leaders, this means a culture of engagement is no longer a choice -- it is an urgent need.
Employees don’t just want a paycheck—an especially true opinion held by millennials, who are now the largest generation in the workforce. They want motivation to work and recognition when they produce results. Solutions like rewards and incentives have become popular in U.S. businesses because they are reasons to celebrate and a tangible display of your appreciation for them and their role in your company.
It’s easy to fall into the mindset that low employee retention rates are inevitable, but there’s more to do about it than you might think. It’s possible to find strategies that engage employees in the right ways so they feel like they are doing great work and making a significant contribution to the company.