The first big ROI (Return on Investment) for an employee engagement solution is, you get to hold onto employees for longer.
Employee retention is the measure of how long employees stay with you. What is considered a “long stay” depends on region, economy, job type, industry, and many other factors. In the generation that is retired now, employees and employers often expected their employees to work their whole life at a single organization. At the other end of the spectrum, new recruits in Silicon Valley high tech companies might be considered veterans if they passed the twelve-month mark at a single company. Typically, tough, three years is considered the minimum sojourn for a candidate to have on his or her resume working in a single organization.
For the purposes of this article, I will consider an organization-wide average three years to be a typical low rate of employee retention. And I will consider doubling that figure to six years average stay to be a “good” employee retention rate, although we should aim for an excellent retention rate of about nine years.
People move from one job to another for any number of reasons. I have never relied on survey or research to give me an answer as to why people move, because more often than not — it has been my personal experience — people move for subtle, and often emotional reasons. Broadly speaking, though, it must be fair to say, people leave because they don’t like where they are. It might be the colleagues, the atmosphere, the culture, the boss, or all of the above.
A properly implemented employee communication system, together with its accompanying employee engagement activities, raises the employee retention within an organization. Employees who stay because they are more fully engaged do better work, have fewer accidents, provide better service and are across the board a greater asset to the company than a disengaged employee is. Any day of the week, I would prefer to have an “average qualified” but fully engaged employee than a brilliant and highly qualified employee who was disengaged.
A high level of employee engagement will always keep your staff on board for longer. And a high rate of employee engagement goes hand-in-hand with a robust employee communications solution.
A high rate of employee retention has no downside. You get better work out of an employee and for longer, as well as saving money on recruitment costs which I will go into in a few days.