Why Employee Investment is Key to Lowering Turnover
I’m a statistical outlier. I’ve been with Lucas Group for 15 years–a tenure that’s considerably longer than the 4.2 years that my professional peers average elsewhere, according to 2018 figures from the Bureau of Labor Statistics. Less than one in three salaried employees have been with their current employer for at least a decade.
In today’s tight talent market, companies are eager to reverse this trend and hold the line on employee turnover. Losing an employee is not just disruptive; it’s expensive. The cost to replace top professionals can be up to 213% of their annual salary, according to the Center for American Progress. So what can companies do differently to keep their star performers? Retention starts with employee investment. This is the approach that’s kept me engaged and inspired for 15 years at Lucas Group–and it’s an approach that will serve your company well, too.
Hire the right people. It’s easier to fix a problem at the source rather than course correct later. Use your interview process to vet candidates not just for skills and experience but also for fit. How you talk about company culture, values and mission during the interview process signals to the right candidates that your company could be their long-term professional home. Use specific examples to help candidates understand how your company values come to life day-to-day. For example, I work in Denver, where an active lifestyle is a top priority. I encourage employers who say they value this active lifestyle to back this up their words with examples, such as a monthly team hike or an office bike-to-work challenge.
Invest in professional development. Once you have the right people on your team, help them grow their skills. From industry conferences to continuing education, these investments signal that your company cares about their professional future. If possible, offer rotational opportunities in different divisions or branch offices so employees can better understand your company’s bigger picture and build stronger ties with coworkers outside their immediate team.
Remove barriers to success. Are you empowering employees to reach their full potential, or are they running into institutional obstacles? Yes, providing a promotion pathway is important, but there’s more to success than advancement. Do employees have the opportunity to take an idea and run with it? Do managers amplify the capabilities of their top performers or stymie new ideas? The processes and structures in place at your company should support success, not hinder it.
Provide room for personal growth. In our “always connected” smartphone culture, work-life balance has given way to work-life integration. Top performers expect greater flexibility. Companies that are willing to meet this need are rewarded with more engaged, productive employees. For example, I recently placed a successful female professional who had just started a family. She had several competitive offers and chose a company that offered generous paid maternity leave and flexible work hours. This rising star is committed to being with this company long-term, thanks to its flexibility.
Offer a paid sabbatical. Many of the companies routinely ranked as “best places to work” offer employee sabbaticals, a reward for continuous service available at five or ten-year milestones. A structured sabbatical program lets employees step back from the daily grind and gain a fresh perspective. Some companies offer extended sabbatical leave if the time off is spent in a volunteer capacity, using accounting or finance skills to support community initiatives. With burnout and workplace stress at all-time highs, the opportunity to take a sabbatical can be a critical reset button that helps lower turnover rates and keeps employees engaged.
I recently returned from my own sabbatical at Lucas Group. This time not only allowed me to focus on my family during a critical period but also gave me time to reflect on my years of experience and to reinvigorate my passion for recruiting. My time away also reminded me how much I value the professional growth Lucas Group has empowered me to achieve over the years. It’s an essential reminder that putting employees first is the key to long tenures and genuine engagement.