Why is staff retention important?
High staff turnover is bad for business. It creates unease, affects morale and costs a company in both time and recruitment fees to find a suitable replacement.
All employees who choose to leave, create a loss of productivity which comes at a great cost to the company – especially if their post isn’t filled immediately.
In the UK, the average employee turnover rate is approximately 15% a year, although this varies drastically between industries. A small level of employee turnover is usually seen as a positive, as it allows for new blood, fresh ideas and prevents employee stagnation. But losing key employees can be costly to the long-term health and success of your business.
People leave managers more often than they leave companies.
Managers widely agree that keeping your best employees ensures customer satisfaction, product sales, satisfied coworkers, and deeply embedded organisational knowledge.
However, people leave managers and supervisors more often than they leave companies or jobs. After 20 years of research and 60,000 exit interviews, the Saratoga Institute reports that 80% of employee turnover is directly related to unsatisfactory relationships with one’s boss.
Here’s the top 5 reasons employees leave:
- Dissatisfaction with management.
- Not getting along with colleagues
- A lack of training and development opportunities
- The journey to work
- Poor salary and benefits
Here’s the top 5 reasons employees stay:
- Supportive management / Great boss
- Working with a great team
- Career Growth / Learning
- Exciting Work / Challenge
- Fair pay
The ones in red are actually the factors that can be influenced by developing or not developing Emotional Intelligence (EI).
Research consistently shows that teams working under a manager with a high EI are more satisfied and work more productively. That’s because managers who rate higher in EI are in a better position to develop effective and lasting relationships. They can cope with the organisational problems more effectively than those having low emotional intelligence.
Positivity is contagious. Upbeat staff are likely to share their attitude, helping to form a harmonious atmosphere. This also promotes an ethos of support and encouragement where peers want to help each other to succeed. This, in turn, is likely to make people want to stick around.
A working environment where people feel free to express ideas themselves is beneficial because morale improves significantly when team members feel free to speak their minds, share their ideas, address conflicts and grievances, and participate in the company’s evolution.
A working environment where people feel free to express ideas and thoughts is also a fundamental requirement for innovation.
We Want You!
When employers invest in their team members by providing them with opportunities to learn new skills or knowledge, it signals an investment in their present and future career growth.
When both parties see the employer-employee relationship as a mutually beneficial process, both are going to reap the long-term benefits.
Organisations who have satisfied employees have more pleased customers and fewer complaints. This results in organisations with satisfied employees having higher levels of customer retention.
Can Emotional Intelligence be learned?
Emotional intelligence is one of the key factors of success in leading people in business in all industries, regardless of the business’s size, age or type. Thankfully, EI is a set of abilities which can be acquired and learned.
In a globally connected community, company culture is on everyone’s lips and emotional intelligence is the glue that keeps everything together.
Failing to create an emotionally intelligent team can harm an organisation’s external reputation and cost it business. If you are interested in finding out more about how EI can help deliver business success: