Throughout my experience working with a variety of teams, of different backgrounds and industries, I have found one element that is true for all successful and thriving teams. That is,
the culture of any business will be as strong as it's recruiting process and the leadership it stands on.
One of the biggest challenges decision makers face is growing a sustainable work culture while minimizing the cost of turnover. It takes 25% - 200% of the person's annual salary to replace them. If turnover would show up on our P & L statements it would be the third, if not the second highest expense of operating a business.
Did you know that people are at least 30% more likely to stay with a company that offers up-to-date training to achieve their career goals? For a company of 40-60 employees with an average of $40k salary and 20% annual turnover that would be a MINIMUM $28,000 - $55,000 annual savings, possibly reaching $370,000.
Most employers that wish to improve their company culture do not know where to begin, mainly due to fear of their efforts going to waste. Simply put, they do not know how to measure the true R.O.I. of culture development, and often times do not believe it's possible.
According to research by Forbes, LinkedIn and Business Insider 70% of people that leave their jobs for another do not make their decisions based on compensation. Seven out of 10 times, the reasons are tied to work culture, management/leadership or growth.
In a survey conducted by LinkedIn in 2019, 66% of all job applicants wanted to know about the company's organizational culture during the recruiting process, while less than 7% of employers focused on culture development. The gap is evident, employee loyalty is at an all time low and employee engagement is the lowest we have ever seen.
It is not the market place nor the economy's responsibility to improve the relationship between an employee and employer. As decision makers, employers and most importantly, leaders, we must take the responsibility and apply strategic actions to improve the morale, productivity and retention with our organization through culture development.