What major challenge keeps CEOs and leaders awake at night in this intensely competitive business environment? The answer likely won’t surprise you: employee retention. Today’s high turnover rate is enough to shake the very foundation of many organizations, increasing costs and adding to the chaos. However, a crucial aspect often overlooked is the employee journey.
Gaining a firm understanding and making improvements in this area could potentially turn the tables in your favor.
The Critical Role of Employee Engagement
Employee engagement is the bedrock of a healthy and successful employee journey. Engaged employees are not only more productive but also less likely to leave. According to Gallup’s State of the Global Workplace Report, more than half of the world’s workers are actively looking for new employment. The study also discovered that low employee engagement costs the global economy nearly $8.9 trillion in lost GDP, with nearly 62% of workers disengaged.
Let’s look at some key areas that lead to increased employee engagement and a more fulfilling employee journey. When the employee experience improves, it allows for a better customer and client experience.
Onboarding: The First Impression Matters
It all starts with a well-intentioned, structured onboarding process. Onboarding is not just a formality; it’s an imperative that shapes an employee’s perception of the company’s culture and long-term commitment to its people. Harvard Business Review found that companies with a formal onboarding program saw 50% greater employee retention among recruits and a 62% increase in their productivity.
A company’s onboarding program can make or break the success of new team members, and I frequently see organizations merely checking the boxes when it comes to onboarding. An effective onboarding program sets the tone, clarifies expectations, and immerses new team members in their new roles.
Zappos, the online shoe and clothing retailer, has been known for its exceptional onboarding process, which has become an industry benchmark. The company’s program introduces new hires to their roles and deeply integrates them into Zappos’ unique culture.
The onboarding process started with a four-week program that included extensive training on the company’s culture, customer service principles, and history. Two weeks in, Zappos raises a unique proposition to ensure total commitment: They offered each new hire $2,000 to leave the company if it wasn’t the right fit for them. While unorthodox, this bold move underscores the importance Zappos places on culture and mission.
Zappos prioritized a comprehensive and culture-focused onboarding process, which clarified expectations and immersed new team members in the company’s ethos from the very beginning.
Continuous Learning and Development
Modern employees crave growth and development. This LinkedIn Workplace Learning Report found that 94% of employees would stay at a company longer if it invested in their learning and development. Regular training sessions, workshops, and access to online courses can significantly enhance employee satisfaction and loyalty.
Continuous investment in learning and development is more than a supplementary benefit or an initiative you address when things slow down. It’s an undeniable strategy for improving organizational performance and employee engagement.
Example in Action
An established retail chain formalized and personalized employee career development plans, resulting in a 20% increase in employee satisfaction and a visible decrease in voluntary turnover. Although the company only previously prioritized these developmental plans a few times a year to supplement existing meetings, they are now the primary focus of weekly and monthly assessments.
What began as a performance-driven initiative significantly improved morale, culture, and employee retention during rapid change and external headwinds.
Career Progression Planning
Clarity in career progression can dramatically impact employee motivation and reduce turnover. A study published in the Journal of Vocational Behavior in 2020 revealed that employees who perceive clear career pathways within their organizations are 20% more likely to be engaged and less likely to leave.
The individual and organization suffer without a visual representation of where employees are and their future career paths. Employees may feel stagnant, uncertain, and overlooked, while the company misses out on potential talent retention and development.
To combat this, organizations must prioritize career progression planning. This involves creating clear and defined pathways for employees to move up within their roles or transition into new positions. Career discussions should be regular and open, with managers actively seeking to understand employee goals and interests. Resources such as training opportunities, mentorship programs, and job shadowing experiences can also help employees explore potential career paths within the organization.
Example in Action
A manufacturing company implemented career progression planning that heavily aligned with employees’ personal and professional goals, reducing voluntary turnover by 10% within a year. Connecting personal ambitions with team members’ professional goals sparked enthusiasm and reinforced to each employee that the organization cared about their people’s future.
Connecting the personal and professional was only one component. Another critical element was that divisions had a visual roadmap of each position and role and the natural progression from where they were now. It also provided context for the various options available if someone wanted to join a different division or business unit.
The Power of Exit Interviews
Understanding why employees leave is invaluable for improving the employee journey for future hires. Data from Glassdoor indicates that 35% of employees are more likely to engage in an exit interview if they believe it will lead to positive organizational changes. Exit interviews provide a safe and confidential space for employees to share their constructive feedback, providing employers with valuable insights into the areas they can improve.
This allows leaders to gather data on why employees leave and identify any patterns or trends in turnover. By analyzing this information, organizations can make the necessary changes to prevent future attrition and ensure employee satisfaction.
Exit interviews also offer employers an opportunity to gather honest feedback on company culture, management styles, and overall job satisfaction. This information can help organizations make meaningful improvements that drastically benefit the employee journey.
Example in Action
An automotive company conducted structured exit interviews, which led to adjustments in their leadership styles and work environment and contributed to a 10% reduction in turnover in the first year. As they gathered information during exit interviews, a few common themes emerged that would have otherwise gone unnoticed. Structured exit interviews also provided analysis and were used as part of a three-month training curriculum for all people managers. The power was not just in conducting the exit interviews but also in leadership acting on the critical information received.
Heart and Soul
Prioritizing the employee journey is essential for building a thriving workplace culture and reducing turnover. As organizations evolve, investing in the employee experience will ultimately yield high dividends in retention, engagement, and organizational success. Embracing this approach is more than just a feel-good strategy; it is essential for developing a resilient and motivated workforce.
People are not an expendable line on a balance sheet—they are your company’s heart and soul. Ultimately, a fulfilled and empowered workforce is crucial to success in today’s business world. So, let’s start prioritizing the employee journey right now; it’s not a burden or extra cost but an investment in your company’s future.