Why Employee Networks Are Key To Talent Retention
Employee Networks are key to talent retention initiatives in an organization. Read on to learn why employee networks are key to talent retention and how to partner with them to retain your talent.
The cost of not having a talent retention strategy is high. According to the Society for Human Resource Management, the cost of replacing one employee can be up to 50% of their salary.
In the UK, according to research by Oxford Economics, the average cost of turnover for any employee earning over £25,000 yearly is £30,614.
Data from the Office for National Statistics shows that employee turnover costs enterprise businesses in the UK over £5billion.
The story is similar in the US with research by Gallup showing that US companies are losing $1trillion every year due to voluntary turnover.
Why Employees Leave
There are several reasons why employees leave an organization.
In 2019 Peakon published a study that drew insights from over 11 million survey responses to find out why employees leave.
One of the reasons employees leave an organization is a lack of communication. Effective communication fosters a sense of belonging for employees. Research has shown that it has a strong impact on employee engagement levels.
“…relationships with colleagues were considered one of the most important factors in determining job satisfaction by 77% of respondents.”
Institute of Leadership and Management
The relationship between an employee and their manager also has an impact on the employee staying in the organization.
According to Gallup’s State of the American Manager report, managers account for at least 70% of the variance in employee engagement scores.
Lastly, research by The Institute of Leadership & Management found that the relationship an employee has with their colleagues was one of the most important factors in determining how satisfied they were with their jobs.
Employee Networks And Talent Retention
There are many ways to partner with Employee Networks to develop a long-term strategy for talent retention in your organization.
Employee Onboarding
Research by Glassdoor found that organizations with a strong onboarding process improve retention of their new hires by 82% and productivity by over 70%.
You can make new starters aware of your Employee Networks and encourage them to participate in their activities.
A study published in the Personnel Psychology journal found that internal networking boosts job satisfaction and reduces the likelihood of turnover by 140%.
It’s a great way for them to meet employees from different parts of your organization and learn about how the business operates from different perspectives.
Internal Networking
A study published in the Personnel Psychology journal found that internal networking boosts job satisfaction and reduces the likelihood of turnover by 140%.
Employee Networks organize events that provide internal networking opportunities and create a sense of community. This can help to create a sense of belonging for employees.
Career Development
Employee Networks provide career development opportunities for employees. Running an employee network relies on employees volunteering their time.
Volunteers get involved in projects outside the scope of their day job which helps them develop and gain new skills which they can add value to their job.
Employee networks provide development opportunities to their executive sponsors - the senior leaders that champion the group.
It gives them an opportunity to expand their worldview and learn about what the workplace is like for people who are different from them.
In addition to partnering with Employee Networks to hire diverse talent, developing a talent retention strategy that incorporates Employee Networks can lead to successful outcomes for organizations.
