Employee retention presents an ongoing challenge for HR in 2023. Hitting hiring targets remains intensely competitive in an ongoing candidate market. And now that 85% of the global workforce is disengaged, nearly half of HR leaders are prioritising employee engagement to maximise and retain both new and existing talent in the year ahead.
With 35% of employees predicted to leave their role in 2023, the market grows noisier with People teams urgently seeking effective retention strategies. In the current climate, the cost of losing talent is steeper than ever.
What is the cost of lost talent?
This is multi-dimensional. The average cost to re-recruit in-house is estimated at around £3,000, whilst external agency fees can represent up to 20-30% of a final salary. The demand placed on internal time and resource to rehire is significant, with the average recruitment window spanning 28 days per vacancy. In addition, it takes on average 8 months to onboard and train new employees before they reach full productivity. And with 86% of candidates reviewing Glassdoor profiles before applying, negative employee experiences risk significant damage to employer brand and future hiring success.
HR’s blind spot
But, when it comes to retention strategies, many HR leaders are missing a trick. To minimise candidate reneges and employee resignations – along with the costs they incur – employers need to understand what their people truly want.
Nearly half (44%) of employees report leaving their last organisation due to lack of recognition – and 63% who feel recognised at work are unlikely to look for a new role. Yet, 81% of HR leaders say recognition programmes are not a current strategic priority.
To maximise and retain their workforce, HR urgently needs to address this blind spot.
So, how can employee recognition drive retention?
1. Boosting employee value proposition (EVP).
Candidate reneges are just as painful as resignations. Now more than ever, employers need to evidence investment in recruitment strategies and reduce rehiring costs by maximising conversions from candidate to employee. Showcasing a dynamic recognition and reward programme as part of the People experience sharpens the EVP, boosts candidate conversion and retains future talent pipelines.
2. Minimising quiet quitting and lost productivity.
82% of employees are happier when recognised at work – and when employees are happy, productivity rises by 31%. Yet ‘quiet quitting’ is costing businesses significant productivity losses. To minimise this, employers must deliver a meaningful engagement strategy that rebuilds authentic connection, re-engages their workforce and restores productivity levels. Recognition and reward programmes delivered at-scale and ‘in the moment’ empower employees to feel valued, realise their own impact, and unleash their full potential.
3. Future-proofing the workforce.
Employee recognition directly predicts workforce retention. Effective recognition programmes drive a 31% lower voluntary turnover and empower employees to be 5x more likely to envisage a future career path within the company. By instilling engagement, belonging and progression opportunity, meaningful recognition programmes are a fundamental retention tool.
What defines effective recognition?
The components of a successful programme are:
- Scalable, delivering impact to all, across deskless, disconnected, or global teams.
- Accessible around the clock and on-the-go, maintaining engagement with all employees, wherever they are.
- Personalised, peer-to-peer recognitions tailored to the individual that celebrate moments big and small, including performance, milestones and nominations.
- Dynamic and delivered ‘in the moment’, so no triumph is missed.
- Streamlined alongside reward and benefits, so employees are engaged in one centralised community.
- Relevant, connecting recognition to wider business themes, including organisational values, to enable employees to align with company culture.
This is how Rippl gives you more.
Rippl transforms traditional recognition programmes to engage and retain all corners of your workforce. Our platform revolutionises ad-hoc, low impact recognition into a streamlined, scalable experience, alongside reward and benefits, all under one roof.
Which is why our users are 3x more likely to remain in their role.
Find out how Rippl can give you more. Let’s chat.