Wharton research shows that external hires cost 18 to 20 percent more than those promoted from within. They also have significantly lower performance for the first two years. I was skipped over four times in my career for promotion, when the company hired from the outside. Each time I ended up leaving the company and so did most of the other internal applicants. One of those companies was sold to its biggest competitor, one is now less than half its previous size, and one declared bankruptcy.
Does promoting from within an organization improve team performance? Research from the Harvard Business School shows that you should examine the circumstances before you make the call.
Research shows how company leaders can use employee resignation data to see if they have a bigger problem. My personal experience shows why this is so important for organizations to understand. Now these types of data points have been aggregated in an interesting research study. This research is so telling because it catches employees at the single point where they have the most leverage in the corporate-employee relationship yet they are still leaving. Learn how to use it to improve.
It's not just what happens at work that makes employees quit their jobs. Research from CEB shared in the Harvard Business Review shows significant job hunting spikes on work anniversaries, big mid-life birthdays, and high school reunions. When leaders are aware of these dates, they can preempt their top talent from quitting.
Many leaders stumble when someone on their team decides to quit. They either hesitate and their top talent gets away, or they throw money at the problem and end up retaining the wrong employees. Both can have a devastating impact on the future of the team and organization. Instead, answer these three questions to know exactly your best move.
0 percent is rarely the right employee turnover goal, because some turnover is good. It strengthens and invigorates the organization by removing those who are not a good fit and creates space for new employees with fresh ideas and new energy. It also creates space for employees to grow into roles of greater responsibility which is an essential ingredient in retaining them. You need employee turnover; the only question is how much? Determine your organization's ideal turnover rate answering these three questions...
Organizations that do not allow employees to work from home are missing out on a strategic business advantage. A research study by Stanford shows that employees who work from home have 50 percent less turnover and are 17 percent more productive (almost a full day per week). The study shows that instead of employees slacking off their responsibilities, they actually worked harder and were happier overall.
A research study by Wharton Professor Adam Grant demonstrates how giving your team the gift of "task significance" and meaning effectively boosts their productivity and motivation. You can do this simply by explaining how and why their work is important.
Senior executives are often too busy to mentor their future leaders. This turns out to be a missed opportunity to retain and develop top performers. It can be done in less time and more cost effectively than most executives ever realize.