Employees don’t seem to be as happy as they were decades ago. Back then, people stayed at the same company for 20-30 years or longer. That level of dedication is no longer the norm.
People are increasingly leaving their jobs and looking for greener pastures elsewhere. At the end of June 2015, 2.7 million workers voluntarily left their jobs. Compared to two years earlier, this was a 25% increase. Many more would entertain a new job prospect. More than 50% of employed workers are not actively looking for a new job, but would be open to one.
Why do people leave their jobs? The top three reasons are a poor boss, limited growth opportunities and better pay. With so many companies offer higher pay and benefits, employees are jumping ship at their current companies and looking for better opportunities. It is not uncommon for employees to leave a company after 3-4 years.
Staffing is a serious issue for many companies. Staffing is the most significant issue for 35% of CEOs surveyed by Vistage. This issues was cited twice as frequently as any other issue. In addition, nearly 60% of organizations consider employee retention to be a huge problem.
Turnover is also costly. When an employee leaves a company, the company ends up paying anywhere from 30% to 150% of the employee?s salary to find, hire and train a replacement. This is a lot of money to spend on a bad hire, which is why a professional can help companies make better choices.
How can companies find the right people to hire – people who fit the role and also want to stay at the company for the long-term? Finding the right candidates is no easy task. That’s where an executive search firm comes in.
These firms place HR consultants who can turn a company’s poor retention rate around. Executive search consultant services work directly with the candidates to help them hone their skills. These firms tend to work primarily with technology firms, who often see a lot of turnover due to competition.
If your company struggles with finding the right people for the job, an executive search firm can help. They offer talent retention, coaching, succession planning and other services.
Poise your company for success by hiring people that fit in with your company’s goals and values. By hiring executive search firm and taking a good look at your company’s work environment and benefits, you will soon be able to turn your retention rate around.