While discussing my competitive advantages with a breakout group in Legacy Connection this morning, I mentioned that satisfied employees have a higher retention rate. Good employees will stay if they feel they are contributing to the company, and being involved/engaged in the process of company culture shift empowers each employee to feel they are contributing. Increased sense of self worth leads to greater satisfaction and higher retention.
One member informed me that the average length of employment with a company is 3 years. The loss of one person from a company costs the company between one and two years of the position's salary.When job satisfaction increases that retention rate to 4 years, a company is able to save the cost of replacing each of those people, saving the company up to 33% of attrition costs!
When job satisfaction and empowerment increases that retention rate to 5 years, the savings climbs to 66%.
A big challenge for companies is keeping their best employees in the face of demoralizing layoffs and payroll cuts. Giving ALL the employees a say in the company with Inspiring Connection book study programs can pay huge dividends.