How to Improve Employee Retention and Company Performance with Career Pathing
Four-and-a-half years. That’s the approximate length of time the average employee stays at one job. Younger employees hop more often, however, with most leaving a mere two years after hire. With disengagement rates topping 71.1% in the Millennial workforce, this is hardly a surprise.
In fact, most younger workers don’t believe their current positions offer them the opportunity to what they do best, and they may not be wrong. Due to a tight economy, many of today’s young workers took whatever position they could find out of college, regardless of their particular strengths, skills, and desires. This reality likely created much of the disengagement seen today, especially for employees who can’t see a way to transition from their current position to one that motivates and inspires them.
What happens when employees aren’t motivated? They underperform or they quit, either of which decreases company performance, translating into higher out-of-pocket costs, increased service disruptions, and hindered opportunity. How to retain employees, however, is something many companies struggle with. Career management can help by increasing engagement and improving employee retention rates.
Career pathing enables employees to see past traditional career hierarchies, giving them ample opportunity for growth. It also highlights positions and responsibilities that bring their individual strengths and latent interests to the forefront, thus boosting workplace satisfaction and their commitment to the company. This not only reduces out-of-pocket costs by reducing turnover, but it also correlates to greater revenues for the company – by about 3% for just 5% improvement in employee engagement. This can mean the difference between turning a profit and running in the red for many companies, especially those companies in industries known for double digit turnover: hospitality, healthcare, and finance.
Want to learn more about how Career Pathing can help drive employee engagement and improve retention?