The results of the 2015 Deloitte Human Capital Trends study are striking. For the first time, employee retention and engagement is #1 on the list of challenges companies are up against.
There have been various studies on the cost of losing an employee. A conservative estimate suggests that it costs an average of 6 to 9 months of the person's salary in recruiting, training and human capital expenses, and the number nearly doubles for those in executive positions. And these numbers don't take into account the opportunity cost of losing an exceptional employee, one that could help your company flourish years down the line.
There are a wide range of factors that contribute to employee turnover. Of course, it's HR's responsibility to manage and mitigate those factors, creating happy employees along the way. The most obvious method of retention is creating an organizational culture that attracts the right people and maintains an atmosphere in which they'll want to work.
This is the challenge for big organizations: to consistently communicate to the employee population, reinforcing its values and successes and articulating the company's vision. Your message will resonate best with your organization if it feels personal, not prescribed or scripted.
Video as a medium works really well for this since it's a straightforward method of communicating. Video can create a conversational tone and a sense of connection. If your leaders are comfortable and confident on camera and can portray themselves with authenticity, then employees are more apt to feel a shared sense of purpose. Confronting retention challenges means constantly finding ways to provide clarity and foster employee engagement.
One way to use video to communicate directly with employees is via quarterly CEO reports. Video allows a leader to address a company's dispersed population at once with a single unified message.
Here are a few ways Tribe's clients use quarterly video reports:
To introduce a new CEO or leadership team. Replacing a CEO can create waves of instability that ripple throughout an organization. Producing a dynamic "leadership profile" can show a new leader's personality, ideas, and values.
To provide company-wide recognition for a job well done. Recognition is a proven factor in employee retention. A CEO can use video to celebrate a company's successes fostering teamwork and a shared sense of purpose.
To solicit feedback and address concerns. Video is a broadcast medium that spreads messages quickly but it can also be used to ask questions. Soliciting feedback, making employees feel heard and addressing their concerns and desires is a major element of employee retention.
To humanize a company's mission and values. Occasionally a company's mission and vision can come across as lofty or abstract on paper. Showing a CEO who embodies a company's values is the most direct reinforcement of your company's vision and mission.
Most employees will never meet your CEO in person. Video is best way to address your global population while also creating the sense of a one-on-one connection to each viewer.
A company that listens is one that has a handle on employee retention and engagement.
How does your company deal with retention?