It is possible that many companies think early turnover is just “the cost of doing business.” My recent work with the U.S. Census Bureau makes clear that there are fewer new workers coming our way, so I think it is time that we get a lot smarter about who we hire and how we retain them. Here are four ideas that I promise will work because if you don’t address it now, turnover may just cost you your business.
Gallup’s Post-Pandemic “Best Friend” Turnover Solution
I Thought I Knew More Than Gallup about Employee Engagement
I confess to initially scoffing years ago regarding one of Gallup’s G12 engagement measurements that considers whether employees have a “best friend” at work. I whiffed on seeing the correlation between this Gallup data and an organization’s level of employee engagement. These are code words for saying I stupidly thought I knew more than Gallup.
Gallup G12 for Employee Engagement Metrics
The G12 is the core of Gallup’s approach to measuring that engagement, asking employees to rate just 12 highly-researched items on a five-point scale. And one of those 12 is “I have a best friend at work”. Gallup then provides organizations with their own engagement metrics against benchmarks.
Turnover versus Employee Engagement
My interest though is turnover versus engagement, a choice made long ago because employee retention is more tangible and more essential as employees are either in their chairs or they are not. No engagement happens without humans coming to work first…and for several reasons engagement seems like a fuzzy metric to me. But now comes data regarding employees working from their own chairs, virtually, and whether they have a best friend at work…and how that impacts turnover. And the results aren’t good according to a Wall Street Journal report on Gallup’s recent research.[i]
“Best Friend” Impacts Employee Engagement
Among nearly 4,000 hybrid workers surveyed by Gallup in June, 17% said they had a “best friend” at work, down from 22% who said they did in 2019. Yet the data also suggests that the connection between having a best work friend and feeling committed to a job has grown stronger during the post-pandemic years—meaning workers who don’t have a best friend at work are more likely leave.
Gallup’s own report goes deeper, telling us the decrease in employees’ having a best friend at work has resulted in fewer employees recommending their workplace to others, that those employees have worse job satisfaction, and for our purposes they are more likely to leave. And that employees’ having a best friend at work correlates positively to profitability, safety, inventory control, and…as you can predict…retention.[ii]
Summarizing this data into on sentence regarding turnover reads like this:
Virtual employees are less likely to have a best friend at work and this predicts they are more likely to leave.
The More Remote We Become Means Less Potential for “Work Best Friend”
Let’s step back from these numbers and think rationally. Couldn’t we predict that many virtual employees would struggle to develop close relationships with work peers, especially those millions of new hires during “The Great Resignation” who might never interact with their peers in person? Consider the likelihood that newly-hired virtual peers can develop these best-friend descriptors that Gallup writes about:
- Someone you can rely on through thick and thin
- Someone who has your back and genuinely cares
- That you keep one another informed and work together to familiarize yourselves with new technologies and processes
Employee Retention is in Danger
There is great retention danger here. Months ago I drafted but never published a blog entry that said there is absolutely nothing good about virtual work regarding retention. That every argument for virtual work can be reversed to become an argument against employee retention. For example…
- Good that you can recruit virtual employees from anywhere, bad that your competitors for talent have exponentially multiplied and can steal them.
- Good that your virtual employees can develop better work/life balance, bad that they can get that same benefit from thousands more employers.
- Good that virtual employees reduce your commercial real estate costs, bad that their turnover and reduced engagement will cost you multiples more.
Here are Four Retention Solutions
Gallup offers three solutions which are (1) promote intentionality starting with leaders, (2) create interactive opportunities for friendships to blossom, and (3) communicate often.
Let me offer a fourth solution which is hold your leaders accountable to a retention goal. My career-changing experience that led to my developing employee retention solutions forever went like this:
- As an HR executive for a bank, the CEO gave me an order to cut turnover.
- Rather than put in place exit surveys, salary surveys, engagement surveys, or solutions like the three that Gallup suggests above, we told branch managers they had a goal to cut turnover and we would report their progress each month.
- Within 90 days turnover had fallen by 19% and we had saved over $4 million.
I said above that engagement is a fuzzy metric because we don’t measure it frequently and we never hold leaders accountable for it. Add my solution to Gallup’s three solutions and engagement will go up and turnover will go down. Promise.
Serious About Cutting Turnover But Not Sure Where to Start?
Schedule a conversation with me at DFinnegan@C-SuiteAnalytics.com to discuss your employee retention roadblocks and I’ll share ideas for how you can move forward and what is working for other companies to cut turnover by 20% and more, even during “The Great Resignation” that can jump start your retention plan with real results.
[i] https://www.wsj.com/articles/forget-work-friends-more-americans-are-all-business-on-the-job-11660736232
[ii] https://www.gallup.com/workplace/397058/increasing-importance-best-friend-work.aspx