Changing your HR Culture can reduce flight risk

One of the biggest costs a business faces is recruitment. So, it makes sense that such costs are limited to essential hires rather regularly funding the replacement of employees.

But the latest WorkL study shows one in three employees are looking to leave their role. This is classed as ‘flight risk’.

Research by the employee engagement data firm also shows an increasing number of people were thinking of leaving their job by the end of 2023.

While it’s sad to lose employees, the cost of team members quitting seriously impacts a company in more ways than recruitment advertising. 

According to the Chartered Institute of Personnel and Development (CIPD), the average cost of recruiting an employee is £6,125. It can cost up to £19,000 for management roles! That’s not all…

Forbes magazine shows that as well as the cost of the recruitment exercise, training and onboarding leads to further cost pressures.

A report in Harvard Business Review says employee turnover will be 50-75% higher in the coming years than companies have previously experienced. That means  bigger costs to businesses are on the horizon.

These costs can be crippling for SMEs, so a change in HR Culture is essential to reduce flight risk.

What is flight risk?

Flight risk is the likelihood that an employee will leave a company for a job opportunity elsewhere. It often involves employees moving in search of a higher salary. But the WorkL study shows that the culture of a business can also impact their decision.

Difficulties with colleagues and management and little or no progression in career or personal development can lead to flight risk.

As we have already mentioned, the flight risk can be a big financial issue for any business, particularly SMEs. But the impact is often felt beyond finances.

If your employee has been with you for some time, they may have built a good relationship with contacts and suppliers. Relationships take some time to build, so your new hire could take time to build a rapport. Worse still, they may prefer to continue their business relationship with your former employee at a competitor firm.

Identifying flight risk

Reducing flight risk is essential to prevent further impacts on your business. To identify the reasons why people want to leave means stepping back and being honest about what might be the problem.

shrewd top tips to reduce flight risk

Most flight risk is the result of a limited number of problems, such as pay and conditions. Here are just some of the ways you can help reduce it.

  • Salaries: If an hard-working employee feels their efforts are not recognised financially, they become a flight risk. A pay rise may not always be possible, so consider employee benefit schemes or targets with a bonus.
  • Career progression: If an SME is going to be a great place to work, then help team members progress their career. Anyone who cannot see progression within a company are a flight risk. Find out what an employee’s goals are and try to help them. Consider development plans that show you want to help them progress.
  • Reduce stress: Putting your team under increasing stress will affect their health. According to the Mayo Clinic, being under stress leads to a range of problems including anxiety, headaches, sleep problems and memory issues. The result is that exhausted and anxious employees will want to leave, so monitor stress. Find ways to break up the biggest tasks and produce a team rather than leaving one person with too much to manage.
  • Management: Many employees quit because they struggle with their manager. There are many reasons why, including failing to recognise an employee’s work. Encourage managers to be constructive with feedback and find ways to promote better working relationships.

Changing your HR Culture reduces flight risk 

We believe that changing a business’s culture makes SMEs great places to work. And it will also reduce flight risk within your business. By implementing new HR processes, your recruitment and employee retention will improve.

Focusing on employee engagement will not only increases productivity because people-centred culture also leads to healthier work environments.

If you would like to know more about how shrewd HR Culture measures will help reduce flight risk in your company, contact our team today.