Chartered Institute of Personnel & Development research suggests that over a third of all workers aim to leave their current employment once the recession has subsided and the job market has been re-ignited. This could leave UK organisations with an unwieldy bill of £63 billion upwards to foot over the next year.
With the average cost for replacing staff estimated by the CIPD at £6,125, rising to £9,000 for senior managers, organisations should pre-empt any threat of an employee exodus by looking after their valued staff now.
They say that prevention is better than the cure so installing engaging total rewards solutions that offer employees aspirational incentives for achieving long-term goals could well prove to be the best strategy. While a cautious approach to rewards and recognition has been necessary over the last year, from both a financial and a PR perspective, now is the time to begin re-introducing appropriate performance incentives. It is an investment where the overall cost will quite easily be less than the financial investment.
While the recession has presented a distinct set of challenges for HR and marketing departments aiming to engage staff towards working their way out of these difficult times, it is important to expect a shift in objectives over the coming year as the economy stabilises and workers build confidence about their prospects of alternative employment.
The answer is to create an employee engagement culture that can become the cause of envy. With this, top performers will recognise that they are already in the best place and will not be so easily tempted away by competitive offers. Otherwise, failing to confront employee retention issues now could prove very costly indeed.
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