According to a report by Gallup, 51% of American workers are actively looking for a different job and those who have already made a switch have collectively cost businesses $1 trillion. Aside from the cost of training new workers, there are several hidden costs that come with high turnover: a decline in team morale, distrust in management, uncertainty about the future, and unhappy customers. Each can rapidly lead to loss in ROI, efficiency and competitiveness. Below, Hani Goldstein, CEO and Co-Founder of Snappy, the rewards-based platform revolutionizing corporate gifting, discusses how employers can avoid turnover and improve retention.
How does high employee turnover impact businesses?
Employee turnover has a direct impact on company revenue, profitability and culture. According to a recent report by Gallup, 51% of American workers are actively looking for a different job and those who have already made a switch have collectively cost businesses $1 trillion.
Clearly, employee turnover is expensive: it requires time and money to train new staff. In fact, the cost of replacing a single employee typically ranges from 10-40% of the employee’s annual salary (or $15,000 per worker). There are also several hidden costs that come with high turnover: a decline in team morale, distrust in management, uncertainty about the future, and unhappy customers. Each can rapidly lead to loss in ROI, efficiency and competitiveness.
What can businesses do to improve employee retention?
Taking the time to show your employees you appreciate them is one of the best investments a business can make; a strong culture within your team is the building block for anything your business is aiming to accomplish. As such, employers need to place as much value on their employees as they do paying customers. This involves year-round efforts that many businesses tend to overlook.
Business leaders should consider taking a small percentage of an employees’ annual bonus and using it for creative employee recognition instead. Personalized, unique corporate gifting has an unmatched ability to make employees feel appreciated. Not only that, it’s critical to retaining top talent. Ultimately, when your team feels appreciated, they are more engaged in the growth of the business.
How does Snappy help companies retain employees?
Snappy Gifts is an enterprise gifting platform that allows employees to choose their gift from a curated collection of options. Snappy offers everything from local experiences like cooking and yoga classes to global getaways and trending products like Amazon’s Echo Dot and drones.
Compared to monetary rewards, gifts help employees feel more appreciated. According to the Journal of Economic Psychology, it takes twice as much money to increase employee happiness at the same rate as a tangible gift. Snappy is the perfect solution because it enables companies to make every employee feel special, with a gifting experience tailored to them.
Can you offer some advice for employees looking to change jobs?
When looking to change jobs, it’s critical to consider all factors involved – money shouldn’t be the driving force. The decision should be a well-rounded one; while a new job may leave you with a bigger paycheck, a poor culture could make you miserable. Additionally, accepting a job with a higher salary but less generous employee benefits could prove to be a mistake in the long run.
As job opportunities arise, it’s important to be thoughtful about your rationale for accepting the offer, as well as the short- and long-term impact on your career, finances and home life. Job seekers should weigh the pros and cons of leaving a known environment for an unknown one. One thing we look at when we evaluate resumes is how long an employee worked at the previous job they had and what was the reason to move. I believe that giving feedback to your current employer and trying to make a change is the step to take before hurrying to switch your job. If the employer is open to take the feedback and acts on improving your position it’s a good sign but sometimes it just isn’t the right fit and it is worth exploring other opportunities. In any case both sides should always do their best to keep a good relationship, as you never know where life will lead you.
More about Snappy:
Snappy regularly works with Fortune 500 companies to integrate corporate gifting into their business model to create and maintain a stronger, more positive and engaged company culture. Snappy recently closed a $10M funding round and released a survey around employee appreciation’s impact on retention.