Happiness – The Key to Reducing Employee Attrition
Andrew Carnegie, steel magnate and one of the richest American entrepreneurs of the late 19th century, is often quoted saying, “There is little success where there is little laughter.”
Employees quit their jobs for many reasons. Some of the more common causes are: burn-out, lack of career development, management conflicts, poor work conditions, among many others. It is a problem that spans across industries – with 79% of HR leaders citing retention as their top challenge. Businesses definitely feel the impact of this, with costs going as high as 6000 USD to replace the average front liner, factoring in recruitment, training, and productivity costs.
So, how can companies combat these turnover rates? What can they do to make their employees stay? Research pins it down to a major bottom line: happiness. While this may seem cliché and vague, keeping employees happy and engaged is actually the number one solution to reducing attrition. High turnover organizations that have consciously made efforts to boost their employee engagement strategies have seen a 24% decrease in their turnover rates. Simply put: happy employees are not only more efficient and more productive, they’re also more loyal and are likely to stay longer.
The next best question to ask would be HOW. How can organizations improve employee engagement and drive happiness?
1. Cultivate a positive and healthy atmosphere.
When people are in an environment where they feel safe and are empowered to be themselves, they naturally gravitate towards it. Employees who feel secured, respected, and supported are 60% more like to be motivated to do their best for their employer.
2. Say “thank you.”
Sixty-nine percent of employees say they would work harder if their efforts were acknowledged more. A little recognition goes a long way – celebrate small wins, show people they matter.
3. Encourage professional growth.
One of the top non-financial motivators for attracting top talent and motivating them to stay is giving them development opportunities. According to LinkedIn’s Workforce Learning Report, a whopping 93% of employees consider this to be true.
There’s no secret sauce to boosting happiness in the workplace. Each organization should take a deep look into their own processes and internal culture to find which methods would work best for them. Whatever strategies a company decides to pursue, it would do well to remember that employees are the most valuable, intangible assets of an organization.
Creating a happy workplace has a domino effect on all the other aspects of a business. CFO reports that 13 companies on the Fortune’s annual 100 Best Companies to Work For list see higher average annual returns, as high as 495%. Organizations with high employee engagement outperform those with low employee engagement by 202%. Happy employees are 12% more productive.
“To win in the marketplace, you have to first win the workplace.”
Even when happiness is subjective from person to person and company to company, the results are encompassing: happy employees are good for business.
At FGC+, we are proud of our happy workplace. Feel the difference of working with happy employees: contact us here.