Our view: The ROI of talent retention
5 November 2019
There are lots of reasons employee retention is important, and this can be achieved by making employees feel valued, happy and looked after. We share our thoughts and advice to help you to achieve ROI on talent retention.
The workplace is changing, and with it the cost of attracting and retaining talent. Losing an entry level employee costs, on average, a third of their annual salary. This sum rises to 150% of salary for mid-level and 400% for senior or highly specialized employees.
Employees deliver value in many forms from direct sales, to relationship development, education, training and brand ambassadorial activities. It’s not surprising then, that companies spend large sums of time and money searching for the best talent. It’s is a surprise that relatively few put strategies in place to retain that talent by combining their productivity and happiness.
Happy employees make good businesses. They improve sales by 37%, productivity by 31%, and accuracy on tasks by 19%.  In return, salary levels remain broadly static, forcing employers to deploy pensions schemes, private medical insurance and flexible or home working options.
There are lots of reasons companies lose talent. From bad management to a lack of regular recognition, poor staff onboarding, ineffective communication and perceptions of company culture can all lead to the company losing talent.
79% of people who quit their jobs cite a lack of appreciation as their reason for leaving whilst 43% of those looking for a new job blame corporate culture.
Work-life balance is increasingly important to employers and employees alike. 95% of HR leaders agree employee burnout sabotages workforce retention whilst remote work and healthy work hours are just some of the factors employees look for when deciding whether to stay or move on.
There is a clear correlation between business travel and employee satisfaction. Employers’ welfare obligations can be supported or undermined by travel policy. Travellers who spend 14 or more nights away from home every month tend to be more obese, do less exercise, and are more likely to display symptoms of anxiety, depression and alcohol dependence.
An ever-changing business world has propelled talent management from an HR process to a central pillar of corporate life. Organisations have to be agile, so having the best people, in the right roles, at the right time, is now business critical.
Talent management is increasingly the means through which organisations deliver their Employee Value Proposition (EVP). The EVP is an ecosystem of rewards, support and recognition that a company provides its employees for them to reach their true potential.
EVP helps companies to attract and retain top talent and also boosts employee engagement. The challenge for many organisations lies in measuring impact, articulating value adds and demonstrating Return On Investment (ROI).
Many executives believe that optimising the ROI on talent investment involves redesigning jobs so that they deliver value. 77% of businesses have introduced flexible working to improve talent retention. Flexible working is almost the new normal, so those who fail to acknowledge this risk losing out when attracting new talent. 83% of workers would turn down a job that didn’t offer flexible working.
The foundation of proving the value and ROI of talent strategy is measurable business results. Companies have to be able to articulate talent goals and link them back to overall business drivers, such as revenue growth, profit, customer (and employee) satisfaction and so on.
In simple terms, the process of engaging with employees, defining company culture and articulating company values leads to the creation of an employee brand. The cost of doing so is set against the cost of replacing talent that leaves during the year, thereby producing an ROI that can be tracked and reported upon.
Addressing staff attrition levels therefore improves ROI. So how can travel policy help reduce staff attrition? 80% of travellers claim their business travel experiences impact their overall job satisfaction at least somewhat. Over half of European travellers also say a company's travel programme is an important factor when considering a potential new employer.
At Capita Travel and Events we are helping organisations to optimise employee productivity and welfare by encouraging new thinking. It’s called Smarter working and places meetings at the heart of travel.
Smarter Working is based on reducing or avoiding unnecessary travel (or meetings) and empowering people to make conscious decisions about how they meet and the best way to travel to and from those meetings. Where travel is necessary, decisions are based on cost and value, with safety and well-being at the centre of those decisions.
-  Employee Benefits News
-  Hays
-  Kronos Employee Engagement Series
-  Mercer Global Talent Trends Survey 2019
-  IWG 2019 Global Workspace Survey
-  Ibid
-  GBTA Creating a Frictionless Travel Experience (2018)
Interested? Let’s have a chat about your company’s travel, meetings and events objectives - from the stuff that keeps you awake at night, to the everyday experiences of your employees! Call us on 0330 390 0340, or submit your details below.