In a 2015 poll , Gallup found that fewer than 1 in 10 workers who changed jobs over the last three decades stayed in the same company to do so … and roughly 1 in 3 made that move in the past three years. With the estimated cost of turnover running at 150% of an employee’s annual salary (not to mention costs related to loss of knowledge, and impact to culture and team morale), this is a costly problem for business leaders to address.
Employers are wise to pay attention to how they enable employees to learn, grow and develop their careers within the organization to increase retention.
But we believe that one of the most important factors to address occurs well before your employee arrives for their first day: attracting and hiring the right people. Having the right expertise, experience, and job skills are a first step, but they alone won’t ensure job satisfaction and retention. Employers should look to alignment of purpose first when selecting talent for the long-term.
Consider the results of NetImpact’s 2012 Talent Report : 53% of workers (and 72% of students) said that having a job where they can make a social or environmental impact is “essential to my happiness” … and more important than being wealthy or having a prestigious career. Workers who say they can make an impact while on the job report greater satisfaction than those who can’t by a 2:1 ratio, and those who don’t would take a pay cut to have a job that does. Employees find it essential to work for a company that shares their values (67%), contributes to society (53%), and works to make the world a better place (51%) … and students – tomorrow’s workforce – increased these numbers by 10 points across the board.
Companies that have a clearly defined and articulated purpose – identifying a need in the world and their unique ability to fill it – are better positioned to attract employees who find their values reflected in that purpose. When employees make a conscious choice to align themselves with a purpose they are more committed, more productive and more likely to stay. Having a clear and compelling purpose not only allows companies to capture the Heartpsace of their customers, but their employees as well.
Has your company discovered its purpose? Have your forged your story and are you shouting it from the mountaintops?
Are you using your purpose as a visible filter for decision making ( like REI announced last week )? Can the people who represent your brand, from hiring managers to janitors, tell the story of your purpose in their own words? Until you can answer yes to these questions, your company is missing the first step in addressing the problem of turnover: the draw of purpose.