As we approach the second half of 2019 it’s the perfect time to reflect on the 6 months that were; training programs run, people systems implemented and new hires were welcomed to the business. All great stuff, but what about the unseen cost of employee attrition? Or disengaged employees?
I don’t want to rain on your parade, but we have a problem.
The hard facts.
Here’s an uncomfortable truth from a recent Gallup survey: only 14% of your employees are actively engaged in their work.
While that might sound low (but let’s be honest, not surprising), let’s dig a little deeper. Gallup estimate that the cost of an disengaged employee, in lost productivity, additional sick days etc is roughly 34% of their salary. If 86% of your workforce are disengaged that’s an awfully large cost to the business – I’m not going to do the maths, it’s safe to assume there’ll be a few zeros on the end.
If that’s not enough to get you shaking in your boots how’s this for a truth from the Institute of Managers and Leaders: The average cost of rehiring and training after an employee leaves is $23,000.
Again, I’m sure I don’t need to do the maths, you’re getting the idea.
That same National Salary Survey from the Institute of Managers and Leaders provides us with some great insight as to why people leave. 60% of employees resigned from their position due to limited career progression within the organisation, 46% switched companies due to limited financial reward, and a staggering 80% of respondents quit their job to seek new challenges (respondents could select multiple answers).
So what’s the solution?
Throughout history what we humans have craved more than anything is belonging, to be connected to a tribe, and it’s the same in the modern workplace. While ping pong tables and sleeping pods are great, if we’re not providing our employees this fundamental human need it’s a complete waste of time.
This is where a mentoring program can help.
To create a true culture of belonging we need to make HR about connecting people, and building the company’s tribe. A mentoring program is not a band aid, it addresses the root cause of company attrition and disengagement by organically connecting people and providing them with bespoke learning opportunities for their individual needs.
Still don’t believe me? One of our favourite Mentorloop clients runs a mentoring program that routinely saves them $500,000 a year by measurably improving their overall employee attrition rate.
Here’s the bottom line. If your people feel more connected, they become more engaged at work, and are less likely to leave for (perceived) greener pastures.
So as we move through 2019, a mentoring program has to be the number one item on your people agenda. Not only will your employees thank you for it, you’ll save your company money.
Not sure where to start? Mentorloop is here to help.
Retain your employees, ensure they are engaged so they can succeed in 2019 and beyond. Book a demo today: