Long-term risks associated with turnover spikes
An increase in turnover is far from a promising way to ring in the new year. In fact, Gallup estimates that voluntary resignations cost US businesses $1 trillion annually. Below, we pinpoint how a surge in turnover can negatively impact every aspect of an enterprise’s performance:
Employee morale dwindles
When there is an uptick in resignations, every remaining employee is impacted. Frequently, workers must add new items to their to-do lists to cover for former colleagues, causing workloads and stress levels to skyrocket. Employee turnover also impacts onboarding, as key points of contact with niche expertise may no longer be around to bring new hires up to speed. Given that Glassdoor linked great onboarding with an 82% retention boost, diminished training capacities can contribute to ongoing turnover issues.
Product or service quality deteriorates
The adage “practice makes perfect” rings true to an extent; it’s near impossible to produce top tier work on the first day of a job. Instead, employees must become familiar with new processes and workflows before they can reach optimal performance. If an enterprise is taxed with filling a host of vacancies simultaneously, there is a risk that the quality of their service or product will falter as employees work to get up to speed.
Revenue takes a hit
Turnover can eat away at overall revenue by upping overhead costs while simultaneously slowing output levels. According to the Society of Human Resource Management’s Human Capital Benchmarking Report, the average cost per new hire is $4,129 and it will be 8 months until this staffer reaches full productivity based on findings from Harvard Business Review. In addition to costs surrounding training and onboarding, the recruiting process itself can be expensive and takes over a month on average, according to a separate report from the Society of Human Resource Management.
CX standards slump
According to PWC, 73% of all respondents rank customer experience as one of the top factors surrounding purchasing decisions. Despite this, less than half of those surveyed are satisfied with the service they receive. In order to provide customers with interactions that are consistently positive, it’s essential to retain employees who are familiar with internal processes and quality standards. A study by Watermark Consulting illustrates the strong negative correlation between turnover trends and net promoter scores (a widely used measure of customer experience quality).
6 intranet features to prioritize in the new year
Poor retention rates don’t have to be part of your enterprise’s story in 2020. The right digital tools can drive employee loyalty and in turn reduce churn risks. Some intranet features that play a critical role here are as follows:
#1. Update L&D sites to designate internal growth pathways
The more confident employees feel about internal growth opportunities, the less likely they will be to look elsewhere. Research from Glassdoor supports this notion, as a study finds a 5% probability increase that employees will stay at their current organization when they feel confident about existing opportunities. A modern intranet can fuel internal growth through designated L&D sites that house upcoming workshops, bespoke portals for new opportunities, and on-demand webinars.
#2. Revamp recognition features to boost employee sentiment
Stakeholders should be sure that employees feel appreciated for the work that they are doing. According to a survey by the Society of Human Resources Management, 68% of respondents believe recognition initiatives improve retention rates. Intranets come with a host of spotlighting tools, including customizable badges, homepage takeovers, and social media shout-outs, all of which can be utilized to reward exemplary employees.
#3. Make 2020 the year for employee feedback
The surest way to know if employees are happy? Ask them. Digital workplaces make it easy for stakeholders to source employee feedback through customizable forms capabilities that can be disseminated to key groups, such as new hires or line managers, to gain nuanced input. Once the results are in, built-in analytics offer streamlined takeaways that can identify potential pain points and offer insight for revolutionary solutions.
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#4. Give your homepage a modern makeover
If you haven’t revamped your homepage, consider starting fresh in 2020. For many employees, the intranet homepage is one of the first things they see each day, so stakeholders should take advantage of it to drive their employer brand home. Targeting capabilities take digital experience to the next level by providing users with centralized tools and updates that are specifically relevant to their role. By extending a personalized touch from the moment users log on, employees will feel seen and supported as they navigate their daily responsibilities.
#5. Launch an initiative that resonates
Take advantage of the fresh-start mentality that is prevalent in January and use this momentum to launch an impactful initiative that everyone can participate in. Stakeholders should reflect on company-wide goals as well as their enterprise’s unique employer brand and pinpoint a movement that connects to key values. Some popular choices include a focus on health and wellness, an emphasis on giving back, or prioritizing emerging talent and learning opportunities. Once an initiative is selected, take advantage of multi-media communications pathways, including blogs, discussion forums, and email broadcasts to generate buzz and ensure that the objective is on everyone’s radar.
#6. Automation features level up employee experience
According to a Harris Interactive study of over 1,000 C-Level executives, nearly half of all respondents cited AI as the solution to improving talent retention. Automated features such as chatbots and virtual assistants can help alleviate frequent pain points and mundane administrative tasks, in turn boosting productivity and improving each employee’s digital experience. Enterprises that invest in cutting-edge workplace tools are likely to benefit from a streamlined workforce that feels empowered to reach optimal performance.
Take advantage of an intranet to reach new heights in 2020
Based on a recent NBC article, January is the best time to land a new job, which means every enterprises' retention rate is at risk. An increase in turnover can serve as a roadblock that will make it near impossible reach 2020 business goals. A high-touch digital workplace enables stakeholders to sidestep the hurdles associated with resignations and equip employees with the tools needed to maximize output levels and quality of work simultaneously. If you are interested in reducing the churn risk at your organization while also paving the way for unprecedented growth, get in touch with our digital workplace experts.