Currently, the job market is experiencing record low unemployment, so retention is KEY. A recent Gallup Poll showcases the current landscape for employees in terms of their level of engagement for an employer.
- 32.5% of employees are engaged
- 51.8% of employees are not engaged
- 15.7% of employees are actively disengaged
Recommendations to Improve Engagement and Retention
- Management and Leadership - 50% of all voluntary turnover is due to poor management. Some studies (such as one by SHRM) predict that every time a business replaces a salaried employee, it costs six to nine months’ salary on average. Focus on ways to improve and develop your company’s leadership team by having a clear internal communication strategy that is executed transparently.
- Meaningful work - This point was the third most important factor for employee engagement by 76% of the respondents to SHRM’s 2016 Employee Job Satisfaction and Engagement Report. Engage employees with meaningful work or watch your employees walk out the door.
- Relationships with co-workers - According to a statement from a Gallup Q12 survey, when you have a close friend at work, you feel a stronger connection to the company and you’re more excited about coming to work every day.
Ways to Incorporate Your ESOP
- Consider a formal mentor program by pairing up a tenured and seasoned employee with a newer and younger employee for some one-on-one mentoring.
- Develop younger ESOP Committee members with the help of board members to improve each committee member’s overall understanding of the ESOP.
- Celebrate each stage within the career life cycle of an ESOP participant.
- Share the unique, non-traditional benefits associated with working for an employee-owned company during the interview & application, onboarding, and the employee’s annual review process.
- Recognize employee-owners that are making a difference within the organization.
Increased productivity, higher job growth, 2 ½ times greater wealth in their retirement accounts, and 5% - 12% more in wages are just a few benefits to help engage and retain employees through an ESOP.