How to Reduce Employee Attrition

How to Reduce Employee Attrition

How to Reduce Employee Attrition

Business Innovation Brief Best Article

Employee attrition weakens an organization. When employees leave an organization high and dry without giving leadership the time to replace them, it hurts the morale of other employees, and the brand image with customers. 

“Attrition impacts the efficiency and productivity of an organization.”

Different Types of Attrition

Attrition in an organization can be of different types and have varied impact on the people left behind.

Voluntary Resignation — This is when employees leave on their own. There are several reasons why employees might choose to do this including — limited growth opportunity, lack of appreciation, mismatch of job role, better pay in a different organization, work-related stress that can become long-term frustration, or even the source of illness. 

It is factors like these mentioned above that contribute to voluntary attrition. A study conducted in the recent past says 49% of millennials never think that they are going to last in one organization or company for more than two years at a time.

Involuntary Attrition — This is the attrition when employees are removed from their posts or positions due to a lack of performance or poor ethical conduct in the workspace. This attrition can aid or harm the company depending on how the decisions regarding the termination of employees are made.

Retirement — Retirement of key employees can be a huge blow to the everyday functioning of the company if they haven’t prepared for it well. It might not be very easy to fill the shoes of an experienced employee without enough notice.

Internal attrition — This occurs when an employee leaves key posts in one department to join more important positions in other departments. In this case, the company or corporation might benefit, but the department that is left behind might be harmed through gradual attrition.

Ways to Minimize Attrition

There are some proven steps that organizations can take to reduce their losses through employee attrition. Here are some to consider.

Do Not Skimp on Compensation

Most organizations cannot afford to pay every employee a hefty paycheck every month, however maintaining industry parity is necessary. Studies have suggested that voluntary resignation from jobs occurs when the compensation offered to employees is even 10% lower than the industry or company average for that position. 

While it is important to make tough decisions about employee salary, it is also crucial for companies to keep the bar up. If employees must ask to be brought up to parity with the market in compensation, the organization practicing this will suffer higher attrition.

Conversely organizations that proactively bring employees’ salaries at parity with the market, have lower attrition. 

“It’s a smart choice to be proactive in compensating employees at least on parity if not better than market trends.”

Match People to the Right Roles

I’ve personally seen this happen to very good sales leaders who get courted for a leadership role, only to end up in some fancy individual contributor role. Nothing wrong with individual contributor roles, but the person who was being courted for a business unit head capacity feels robbed, and that’s the beginning of the end of that relationship. 

It’s important to be totally honest with what you are hiring for, just as it is important to let employees be transparent about their preferred roles.

The best leaders don’t just hire to fill roles, they hire to enhance the value the organization creates. Matching up people to the right roles is a learned leadership skill, yet an important one to reduce attrition, and maintain a competitive advantage in the market.

Reward Employees Often

Your employees need to understand that you, as an organization, appreciate their work and that their efforts are not going unnoticed. Hence, you need to make sure that their big successes or their proactivity in the workplace get rewarded often. 

This keeps morale high in the workplace and motivates your people to do more than expected. 

“Creating an atmosphere of acknowledgment and trust is crucial to lowering attrition.”

Engage Employees

Working in an organization for a long time might often become mundane, repetitive, and bland for most people. Here, productivity rates begin to fall, and the company’s efficiency decreases. 

The leadership’s responsibility is to keep employees engaged in everyday tasks by making the workplace a warm and hospitable environment.

Be Flexible

Employees crave a flexible work/life. If you’re not offering employees flexibility around work hours and locations, they might easily leave you for someone who will. 

With the improving economy and the coming talent shortage, attrition promises only to get worse. The 5 days’ work week is antiquated, why not change it up. Experiment with a four-day workweek. There are some real measurable benefits to doing so to both the organization and the people.

Practice Gratitude

Encouraging prosocial behavior with your employees, can create a culture of generosity and gratitude. Connecting through acts of giving and expression of gratitude, employees will be healthier, happier, and less likely to leave. 

“Encouraging to lookout for good behaviors to commend gives employees a sense of ownership of the company.”

Even if your business is otherwise successful, employee attrition can cut into your profits and even cause you to lose customers. Developing a plan to reduce attrition is the only way to get ahead of it.

“Employees are the building blocks of an organization and ensure the success of a business, so it’s important to keep them happy.”

Create an environment where everyone feels proud to work for your company. Employees should feel safe, valued, and included. They shouldn’t be afraid to be themselves in the workplace or forced to be someone they are not. 

“Creating an outstanding company culture will ensure lower attrition.”

Finally, have more fun. When people are paid competitively, do work that aligns with their personal aspirations, get rewarded often, feel like they are doing something good in the world through social impact, practice gratitude and have fun…. they don’t have time to think about leaving. Why would they?

Business Innovation Brief

The Importance of Downtime on Health and Productivity

The Importance of Downtime on Health and Productivity

The Importance of Downtime on Health and Productivity

Business Innovation Brief Best Article

The evidence that emptying your mind is a vital part of being creative and successful is proliferating.

However, many people do not take advantage of their paid vacation time, even if they have access to a week or several weeks off. Most people cancel or postpone vacation time due to actual or perceived job obligations. It is a concerning issue for both large enterprises and family-owned businesses.

Getting away, on the other hand, does not imply leaving the country or even the residence. The goal is to locate a place that allows you to take a mental break from work — and all its anxieties. 

It could be as simple as putting your phone away for a few days. For a few days, stop checking emails and receive regular notifications. It could simply mean “to unplug.”

Some people do this while staying at home (a “staycation”), while others go to the cottage or out of town. In either case, a change of scenery aids in a better complete dissociation from daily problems.

“A vacation allows you to take some well-deserved time off from work and rest and recharge your batteries.”

Work might cause exhaustion and stress if you spend too much time there. This, in turn, has a direct impact on our physical and mental health. A few days away from work might help you refresh and de-stress. However, a weekend is insufficient. Vacation days are supposed to be utilized! 

Last week I wrote about the benefits of the four day work week. I thought I would follow up with writing about the importance of extended downtime. 

Get Enough Sleep

The priority during down time is to get some rest. Solid, high-quality sleep allows your brain and body to rejuvenate. It is a chance to put all you have learned throughout the day into practice. 

Some people claim that they can function on only a few hours of sleep a night, but this is untrue. 

“When you get a healthy eight hours of sleep, you will be more productive, creative, and happy.”

Go on Vacation

The second type of downtime is vacation. A more extended period away from work (at least three to five days) is a great way to recharge your batteries. 

While you are away from your usual routine, you can take a fresh look at your life. When you look at it from the outside, it is easier to see what you want to modify!

“Vacation time allows you some self-reflection and the ability to check in with your life’s trajectory, and make plans for changes as needed.”

Take Regular Breaks

The third type of downtime is the tiniest and most complex. It is those fleeting moments of clarity in your mind that come through meditation, a walk in the woods, participating in sports, or simply sipping a cappuccino on a terrace in the middle of your workday.

Find something you love to do, and go do it. Swimming, biking, reading, whatever it is… use it as your break time.

Importance of Downtime 

Downtime isn’t a luxury, it is a necessity to maintain good mental, physical and emotional health. 

Rest helps you boost mental capacity: A well-rested mind that is free of worry is often more effective and creative. Hence you should plan a vacation regularly.

Time off maintains better physical health: A vacation provides the opportunity to catch up on sleep and exercise, which are two simple remedies for our many aches and pain.

Vacations increase your productivity at work: Despite popular belief, research shows that providing employees with additional vacation time enhances corporate productivity and reduces the number of sick days required. Employees have a better quality of life due to liberal vacation rules, which translates to better work quality. Workers also report feeling more creative after taking time off. And more than 70% of them said they were happier at work when they took regular vacations.

Vacations can help you strengthen relationships: A break is an excellent opportunity to spend time together in a less scheduled setting and build lasting memories together, whether with loved ones.

Vacations remind you to appreciate life: Taking time off can be an excellent opportunity to meet new people, laugh, read, learn, and do the things that you enjoy the most.

Finally, vacations might help you stay young! Chronic stress is proven to hasten biological ageing as well as the ageing process. 

Why don’t you do yourself a favor for your well-being? Make self-care a priority and schedule some time off. Taking regular vacations is one of the most satisfying treatments for keeping well even from a medical standpoint.

Business Innovation Brief

The Advantages of a Four Day Workweek

The Advantages of a Four Day Workweek

The Advantages of a Four Day Workweek

Business Innovation Brief Best Article

Achieving work-life balance has always been an endless battle among corporate executives. On average, a full-time employee in the United States works 1,801 hours per year, or 37.5 hours per week, which is more than other OECD countries. For example, Europeans work up to 19 percent fewer hours annually compared to those working in the US.

This has been the work culture since the end of the great depression, but today, with technological advancement, many companies have recognized a lesser need for an in the office workforce. The recent pandemic really forced this change, and the realization of how effective work from home is, will likely be permanent for many.

Another new working model that is gaining popularity is that of a four-day workweek. Amid the work from home situation, many employees have complained of no time for personal life and family due to long working hours and working during the weekend. A 4-day work week might help them get a hold of both their professional and personal life.

For example, the four-day workweek plan would address a significant issue in the UK labor market burnout. In 2017–2018, work-related stress, anxiety, or depression accounted for 57% of all sick days, with workload pressure accounting for 44% of these.

If you think that’s bad, according to Everyday Health, in the US 83% of workers suffer from work-related stress. US businesses lose up to $300 billion yearly because of workplace stress. 

“Stress causes around one million workers to miss work every day.”

Only 43% of US employees think their employers care about their work-life balance. Depression leads to $51 billion in costs due to absenteeism and $26 billion in treatment costs.

“Work-related stress causes 120,000 deaths yearly and results in $190 billion in healthcare costs yearly.”

52% of Generation Z in the US have been diagnosed with mental health issues. There is a noticeable generation gap between baby boomers and Gen Z in terms of stress. While 52% of Gen Z has been diagnosed with mental health issues, only 41% of baby boomers have been. 

“57% of people stressed-out are paralyzed by stress.”

Let’s look at the advantages of having a four-day workweek. With more free time to heal and recoup, staff would perform better, enjoy their tasks more, and consequently take fewer sick breaks due to high-stress levels. Several companies are trying to experiment with the four-day workweek.

I personally tested the four-day work week last summer and was more productive than I could have ever imagined. It is true that the downtime allows for better recovery, mentally, emotionally, and physically. I love what I do, and with a little more down-time I discovered that I love it even more. I am doing the experiment again this summer.

“Four-day work weeks have benefits for both the employee and the employer.” 

Reduction of Costs

A four-day workweek can help everyone save money. The most obvious benefit is that operating costs would be significantly reduced because the office would be closed one extra day per week. Additionally, employees would spend less for commuting and would see cost savings in other areas such as lunch and coffee during the day. One day less a week can add up to saving a large sum of capital every month and even more throughout the year. 

“Shifting to a four-day week eliminates 20% of variable overhead expenses like electricity and energy consumption.” ~US Energy Information Association

Increase in Productivity

A case study in New Zealand found a 45 percent reduction in stress and a 45 percent rise in total life satisfaction in a company with 240 employees. Not only did their productivity rise but so did their commitment to the organization. When employees are pressured and compelled to work more and more without any rewards, it becomes hard for them to remain productive. On the other hand, if they are provided with suitable rewards and leaves, they are motivated to perform better. 

“A four-day work week could solve the high attrition problems some companies face in certain market segments, like IT Services.”

Increase in Employment Engagement

Employees have more time to rest and heal thanks to three-day weekend and an extra day off. As a result, individuals are less likely to be worried or take time off due to illness. They become more energetic and have increased attention spans. They become more motivated to return to their employment because of having more time to rest.

A real-life example of this are nurses working a four-day workweek. Nurses were found to request fewer sick days, plan 85 percent more activities for patients in their care, and reported higher health, mental well-being, and engagement in a study conducted in Sweden from 2015 to 2017.

Encourages Equality within the Organization

When it comes to adults who are unemployed due to childcare duties, there is a significant gender divide, with 89 percent of them being women.

Most of the time, women and single parents drop out of their corporate jobs due to less time for family. There are few allowances to help them in this regard. 

The four-day workweek can be beneficial in these cases. Employees, male, female, and non-binary, will be able to spend more time with their families while managing care and job commitments with a four-day workweek, promoting equal establishment, diversity, and inclusion in the workplace.

Less Health Issues

 The best advantage of a four-day workweek will be that the employees will have ample time for relaxing and getting back to work. Dr. John Ashton, president of the United Kingdom Faculty of Public Health, has suggested the health problems faced by office workers — obesity, sleep problems, high blood pressure, heart problems, and stress-related illnesses — are linked to too many hours sitting at desks. 

“Rest and rejuvenation are essential for the overall well-being of an individual.”

Four-day workweeks have been shown to decrease stress and improve mental health. Since stress has been proven to increase risk of disease and decrease life expectancy, a four-day week seems like a logical next step for humanity.

Environment Friendly

A shortened work week can cut overall carbon emissions and save energy by reducing commuters. You will not only help save the environment, but you will also save money on your energy costs! 

For instance, the state of Utah had a 13 percent reduction in energy use, and as a result, workers saved around $6 million in fuel costs, when it commissioned the trial for businesses in the state to try a four-day work week in 2009. According to findings, the initiative would reduce the state’s greenhouse gas emissions by more than 12,000 metric tons a year.

Should You Try This?

The four-day workweek plan is practical and offers quite a few advantages too. If you’re willing to boost the productivity of your employees by giving them three off days a week, the four-day workweek plan is worth trying. 

“An overworked employee is much less productive than an employee working a reasonable number of days per week.”

While just 15% of employers currently offer this schedule, according to the Society for Human Resource Management, the rise of flexible and remote working arrangement as well as advancements in technology and automation are pushing this idea toward becoming reality for more.

Companies pride themselves on perks and benefits for employees, but what people really want is more time for their family, hobbies, and downtime. In turn employers get more loyal, productive, and healthy employees. 

Why are we letting a decision made 80 years ago of working five days a week, dictate our needs in 2021 and beyond?

Business Innovation Brief

How Communication Skills Can Improve Your Relationships

How Communication Skills Can Improve Your Relationships

How Communication Skills Can Improve Your Relationships

Business Innovation Brief Best Article

Relationships are not difficult to sustain, provided there is open and honest communication between people. When each person understands how the other thinks and feels about specific topics, the relationship becomes more open and inclusive, making it simpler to sustain. 

Communication is considered the key pillar of any relationship.

In the season four finale episode of Rant and Grow, Dr. Jim Van Allan, a professor of communication studies with Kaiser University, professional speaker, and author, talks about his love for communication, and shares his own journey.

Stop Being Lousy

As Jim speaks about what he had to go through to fall in love with communication, he recalls how his relationship with his father strained over the years because of poor communication. He observes that many parent-child relationships are ruined when the child reaches teenage years.

It happens because neither of them communicates what they feel, and that leads to misunderstandings. He decided that he didn’t want to be a lousy communicator like his dad was and started taking up courses related to interpersonal communication skills in college.

When we don’t learn to express ourselves in constructive ways, we end up having lousy relationships and it’s not because of the other person, that is on us as individuals.

“It just splintered our relationship and it just spiraled. You know, he never really dealt with it face-to-face. He never really said, hey, let’s talk about this.”

Deal with Your Insecurities

Everyone is dealing with insecurities and personal issues. It is what stops them from being themselves and communicate it to the world. They fear judgment, and even if they do share, they become their own worst critics. It also means that they are afraid of being vulnerable and letting their feelings out.

Jim said: A common link that I found is that everybody is dealing with something, and it could be big, it could be small, or it could be an issue with a parent. It could be an anxiety issue; it could be OCD. Everybody’s dealing with some kind of insecurity, vulnerability, and they don’t know how to articulate it, they don’t know how to share it, they don’t know how to manage it and how to kind of live their life with it.

It is essential to let our feeling out, not like a volcano, but appropriately. When people refrain from sharing their feelings, it affects every aspect of their lives. However, communication proves a pivotal factor to survival in such situations as humans are born to connect and build community.

Talk about Your Passions

Jim says if you get anxious while communicating, you should find something that you are passionate about. If you notice when anyone is talking to you about something they are passionate about, they never fumble!

For example, a teenage girl talking about her love for makeup or a middle-aged man talking about his passion for sports. You just have to find your area of interest, prepare for it, and everything else gets easier.

It is a decisive shift in context when you find what it is that excites you. You attain a more positive attitude while having conversations on topics that would otherwise scare you.

“When you are passionate about something you never want to be quiet about it, you want to tell the whole world.”

Ask Questions

Many people think that human interaction is rocket science. It is not. You just have to do more listening. Ask a question. Yes, it is that simple. Ask questions. Take interest in learning from others.

The simplest way to start a conversation is by asking questions. It could be as simple as “Where are you from?” When you ask someone a question, they ask you another question, and before you know it, you’re already in a deep conversation. 

Even if it doesn’t work out sometimes, it is okay; not everyone is meant to be your friend. You must keep trying in order to become a better communicator.

Overall, communication is one of the most crucial life skills that one must have to excel in relationships and your career. Your ideas and opinions are a waste if you don’t communicate them appropriately. 

Once you learn to share your thoughts and ideas, everything else automatically simplifies.

To learn more about how communication is essential for relationships, catch Jim Van Allen, an expert, and his conversation on Rant & Grow for some terrific tips.

Dr. Jim Van Allan is the Vice President of Schools for The Jon Gordon Companies. He runs the Energy Bus for Schools and Power of Positive Schools programs which help schools across the U.S. develop positive, engaged campuses. 

He is also a Professor of Communication Studies for Keiser University teaching public speaking and interpersonal communication courses fully online. Jim runs the podcast ‘Communicate to Motivate’ helping to make communication skills practical and powerful in everyday life. We talk about the importance of developing great communication skills and the impact it has on relationships.

Just click on the play button to listen to the podcast right here.

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