A recent study of 1,500 respondents in the USA showed that disengaged employees cost companies between $450 and $550 billion a year. No small sum and a separate report by Gallup stated that 51% of employees are searching and/or watching for new jobs.
The impact on business performance from disengaged people is not the only cost to count the other really important factor is the pain of replacing talent. You lose a fully trained and in-post employee and start with a vacancy which typically means no employee for a period (implying zero performance), you then hire, induct & train, often requiring a period of delay before an individual is performing at their optimum level. It is no wonder the costs rack up.
This article highlights some of the specific challenges that occur when you workforce is multi generational with their different demands and expectations.
Other underlying causes of attrition can be poor job profiling - do you really know why your best performers in a role are motivated and do well? Does the attraction and selection assess these attributes? Is the employer brand/cultural fit effectively reflected in your candidate experience so that the right people stay in process and those that will not "fit" deselect?
Whether it is disengaged people leaving or poorly hired talent that does not stay the costs, both real and hidden warrant this topic getting more attention and investment.
"The main challenge in engaging employees across generations is that generations differ in the way they approach work/life balance, loyalty, authority, and other issues that affect your organization," according to Diane Belcher, senior director, product management, at Harvard Business Publishing Corporate Learning. The needs of each generation may be diverse, they may see rewards and recognition differently and they may take a different approach to ownership of the work. But they all have some commonalities that employers can build upon. Whatever the mix in an organization, employees need some of the basics to be engaged. It starts with a culture that values everyone's contributions. The first step is emphasizing what everyone brings to the table and how important those contributions are.