A high employee turnover rate can be a challenge for any company regardless of size or industry. Today, with employee tenure decreasing across the board for all demographics annually, whatever an organization can do to reduce its employee turnover rate can potentially have a significant impact on a company’s bottom line and productivity.
According to the U.S. Bureau of Labor Statistics (BLS), the average tenure for wage and salary workers in 2016 was 4.2 years, an 8.7% decrease from 2014. These rates drop almost in half when examining millennials whose reported tenure in 2016 was only 2.8 years. A further area of concern for HR and hiring managers is that wage and salary workers who have tenure of less than one year with their current employer make up 23% of their workforce.
It gets even more challenging when one starts to look at the direct and unseen costs associated with higher turnover rates. According to the Center for American Progress (CAP), employee turnover costs businesses about one-fifth of a worker’s annual salary to replace that worker. Given these numbers, turnover is not just an inconvenience for a company, its bad business.
Maintaining a stable and satisfied workforce is good for a business’s bottom line, but can job satisfaction be improved if the option of increasing employee compensation to double market rate is not within your budget? According to the Society for Human Resource Management (SHRM), a 2017 study found that trust and communication with management and their peers rated "very important’ for job satisfaction for many employees.
The most expensive resource and investment any company has are its employees. Keeping them satisfied and engaged should be a top business priority. Giving those employees a voice and an easy-to-use method for inter-company communications and collaboration is core to making them feel included by providing an environment supportive of social interaction.
A modern intranet solution, like Catapult’s Fuse platform, can be the glue that helps to bridge the gaps between management, staff and divisions within the company with the kind of functionality many employees have come to expect in consumer social media apps. Using the features these solutions typically provide, like being mobile and having robust social collaboration tools, there are a variety of quick and easy tricks that can help to reduce employee turnover and increase job satisfaction without breaking your budget.
Ease-of-use is a key component expected of any modern intranet solution. Millennials and younger employees will not accept a platform that feels too traditional and does not meet their expectations for functionality they have come to expect from other social products and services. If millennials come to work and find the tools are hard to use and clunky, they won’t use the full suite of functionality.
“Considering the fact that millennials are the largest generation in the U.S. workforce, it's essential to provide modern digital workplace tools such as a relevant intranet and mobile app.” – Mike Harris, Catapult Systems Solutions Director.
Try these two tricks for a quick and easy method for reducing churn and increasing employee job satisfaction.
Allow Employees to Like and Share News on the Intranet
If you want to make employees feel like they are part of something, and not just along for the ride as corporate mandates are pushed down the ranks, try methods that promote engagement directed at getting employees to like and share news articles on the intranet. It doesn’t need to be just corporate news and PR alerts, but let people use it like their business version of Facebook. Employees can post their own industry content they find of interest, tips and tricks, productivity material, educational material for their discipline, and maybe even personal or fun cultural items to get employees, especially millennials, engaged and feeling like they have a personal stake in the company and can express themselves and their interests.
Have the HR Team Respond to Employee Questions on the Intranet
Publishing out HR benefit information on an intranet is a surefire way to get employees on the platform and searching for information. But why not take it a step further and engage those people? With a modern intranet solution, the ability to provide comments and responses to articles and social posts is core functionality. No matter how much information you post to the intranet, employees always have questions that need to be answered, things that need to be clarified. The advice to HR is to save time on those unnecessary, face-to-face meetings and engage with employees digitally by responding to their feedback and inquiries on benefits and other corporate information within the intranet.
Related Article: Top 6 Reasons Employees Don't Use Your Intranet
With a modern and forward-looking intranet solution, a business has a tool at its disposal that can serve as the digital HQ of the company, enabling collaboration, communication, and building trust and alignment with business goals and management. As the corporate digital HQ, an intranet can provide employees a voice and personality, as well as a central location for all employees of a company to connect and collaborate. Lastly, an intranet can help enable employee engagement with corporate initiatives, such as wellness, leadership and cultural programs.
Intranet solutions have moved way beyond the old platforms of document management, they are now enablers of a company’s mission and can be used to not just reinforce the brand, but also evolve it as they incorporate employee’s personalities and organization needs into a centralized meeting place.