What Company Values lead to a higher employee retention?

25 March, 2020

One of the highest overheads a company can incur is staff turnover. In this blog, we are going to be looking at the Company Values that lead to a higher employee retention.

In 2020, companies need to invest time into employee retention strategies. When an employee leaves a business it can lead to a loss of momentum, training, leadership and customer relationships. This can monetarily effect a company for months after the employee has left. 

According to a recent study conduct by LinkedIn across millions of profiles;

“There is a 76% chance of an employee still being at a company after 12 months there. After two years, there’s a 59% likelihood, and after three years, a 48% chance.”

The last thing you want to do is lose a valuable employee after 3+ years of training! The report goes on further to assess any likely causes of the rapid decline in employee retention over 3+ years.

Factors that can lead to high employee turnover:

1. The employee has remained in the same position for multiple years

If an employee has been promoted they are 70% more likely to stay with a company. Alternatively, if their role has been expanded or changed, they are 65% more likely to stay when compared to an employee who has stayed in the same position for 3+years.

2. A lack of employee management 

Strong managers are highly rated within businesses as they have a huge impact on employee retention. According to Linkedin, companies with high management skills are 43% more likely to keep an employee for 3+ years.

3. If employees feel as though they have no influence

If an employee feels as though they are not valued or have no influence on the direction of the company they may become disengaged. A disengaged employee is 12 x more likely to leave than an engaged employee.

In summary, Linked in advises business in 2020 to focus on employee mobility, effective management, and employee empowerment to ensure a low employee turnover.