Employee retention is a red-alert issue for businesses and industries of all kinds as the global pandemic continues to grip society. According to a study by the Bureau of Labor Statistics (BLS), the overall turnover rate stands above 57%., with 25% of that figure being voluntary turnover. Additionally, other statistics show that a 19% turnover rate should be expected by most industries, with the average cost per hire for new employees being $4,129. Losing employees hurts productivity for businesses and costs them significant financial losses, necessitating more robust solutions to convince employees to stay on the job longer.
There are multiple factors influencing turnover for businesses across the board. Many employees reevaluate their work-life balance due to the pandemic, worrying about their futures, health, and preparations for retirement. In other cases, companies aren’t providing sufficient incentive for employees to stay, whether due to pay or the absence of a reward program. However, one main issue that deserves increased attention is the lack of mentorship in workplaces and how good mentorship boosts employee retention for companies.
Retention rates for mentored employees are more than 50% higher than those that aren’t and arguably have a bigger impact on retention than salary raises. Mentorship is more than just giving someone the best possible advice on what can be done next. It is a talent management practice that more organizations need to utilize to keep their employees happy. Through effective talent development and training programs, companies can reassure their employees about their respective skill sets while also providing guidance amid concerns over their financial futures. With more employees set to quit their jobs in the foreseeable future due to the Great Resignation and other pertinent factors affecting employee retention, mentoring should be a priority for more organizations.