Employee engagement, with behavioural incentives and an open dialogue regarding the aims of the program, are vital. The right Employee Rewards Program delivers on employees' desires and reduces their chance of leaving. A program that doesn't give employees what they want will push them out the door - at a significant turnover cost.
People are companies' most important asset.
This is a common mantra in the business world, but one that many fail to act on. In actuality, staff turnover is an identifiably large cost in the modern workplace, with a Glassdoor survey showing it costs an average of $4,000 USD and 52 days to fill a vacant position now.
Reducing staff turnover by improving engagement is therefore vital. However, an engagement program that doesn't give employees what they want is no more effective than helping them pack up their desk for a new job. If done right, an Employee Rewards and Recognition Program helps employees with how they want to be recognised and incentivises them to commit to your business long-term.
Nearly 90 per cent of Glassdoor users are looking for jobs or would consider opportunities elsewhere.
The employee turnover problem in Australia
Eighty-nine per cent of Glassdoor users are either actively looking for jobs or would consider better opportunities elsewhere. This statistic supports just how low levels of engagement are in the modern workplace. Event management company Eventbrite corroborate these figures, claiming a startling one-in-five Australian employees are doing less than expected in their day-to-day role.
On top of this, an increasing number of millennials are creating new work standards. Average tenures among this generation are lower than previously (Deloitte estimate two in three will leave their employers within four years). Millennials also have different employment expectations - more than 67 per cent believe management need to offer more development opportunities to encourage them to stay longer (Glassdoor).
These factors combine to make the modern Australian workplace a tough spot to find naturally engaged and loyal workers. The high costs of staff turnover are a drag on many businesses - and can be remedied with the right kind of Employee Engagement Program.
2 key ways an Employee Rewards Program minimises staff turnover costs
There are four major costs associated with employees leaving your business:
The loss of knowledge and expertise (especially with key employees).
The time and money spent advertising, hiring and re-training new staff.
The actual dollar value of paying out an employee's holiday and sick pay.
The potential cost of a change to your workplace culture.
With a well-planned Employee Rewards and Recognition Program, you can mitigate these costs and even prevent them from being incurred in the first place. An incentive program lowers the likelihood of employees leaving, meaning your unforecasted advertising, recruitment and training costs are limited.
If successful, a rewards program can also keep employees more engaged with your business and satisfied with their role - a positive work culture that yields better productivity and better results.
Using Power2Motivate's incentive program expertise
Using an Employee Rewards Program is a great idea on paper - but only if you use one that champions your staff's desires for what they want from your business.
It's not good enough to incentivise your employees with the same token reward - each success needs to be celebrated as personal to the employee. With Power2Motivate Australia's massive Global Rewards Gallery, staff will be able to find a reward that incentivises them personally to perform. And if there is something they want that we don't have, we can source and deliver it on your behalf.
Our years of experience in delivering incentive programs has led to the development of our current online rewards platform. A points-based system allows you to attach a value to different behaviours and goals, meaning you have greater control of what you want your staff to achieve. This also makes your goals clearer, a major benefit as a defined business pathway is a key desire for millennial workers.
Want to hear more about Employee Rewards Programs and minimising your staff turnover? Contact the Power2Motivate Australia team today!