The Retention Puzzle
California companies are struggling to retain their best and brightest. With average employee tenure falling below two years, addressing the rising turnover rate is a critical business imperative. A key piece to solving the employee retention puzzle is the workplace. Irvine Company Office commissioned an independent, in-depth research investigation into how the workplace impacts employee quality of life and employer satisfaction. From retaining rising stars to addressing tech talent turnover, the results will change how you think about your workplace.
To make it easier for our customers to retain their top performers, we explored the workplace’s impact on quality of life and the corresponding impact of a higher quality of life on an employee’s satisfaction with their employer. Losing talent is not only disruptive, it’s also expensive. Turning over a highly skilled job costs a company an average of 213% of the cost of one year’s compensation for the role, according to the Center for American Progress, citing 11 research papers published over a 15-year period.
“Losing talent is not only disruptive, it’s also expensive.”
Research also tells us that employees who are satisfied with their employers are less likely to leave their companies for opportunities elsewhere. That’s because people don’t leave jobs; they leave work environments.
Finally, as workplace experts, we know the enormous impact of the workplace on an employee’s quality of life. These facts formed the basis of our exploration.
Does the work environment’s impact on quality of life translate into greater employee satisfaction with their employer? Which workplace features matter most for retaining top talent? Which employees are most sensitive to workplace quality?
The resulting survey of California decision makers provided crucial insight into how different workplace offerings can contribute to higher employee retention.
The findings of our survey are clear: The workplace’s impact on an employee’s quality of life strongly correlates with an employee’s satisfaction with their employer.
Our analysis of this research provides two key elements: a list of the workplace offerings that are most impactful for employee quality of life and employer satisfaction, and the evidence on which to build a compelling benefit case within your organization and establish a mandate for workplace excellence.
Employee retention challenges won’t be solved overnight. But taking ownership of how your workplace impacts an employee’s quality of life and, in turn, employer satisfaction is a vital first step that can have a ripple effect at all levels of your organization.
1. The Talent Retention Issue
Going green is a contemporary business imperative and our findings underscore the impact green initiatives have on employer brands. Nine out of 10 employees think their employers have a responsibility to promote sustainability initiatives within the workplace. One in three employees under 45 would consider leaving an employer that failed to do this.
Retention takeaway: Being a good corporate citizen matters. Younger employees expect a commitment to sustainability.
2. AN UP-TO-DATE WORKPLACE IS THE TOP DRIVER OF EMPLOYEE WORKPLACE SATISFACTION.
Nearly nine in 10 employees think their employer has a responsibility to provide an up-to-date workplace. One out of three employees under 45 would consider leaving an employer because of an outdated workplace.
Retention takeaway: A workplace requires consistent investment over time to avoid talent loss.
3. TECH TALENT CARES MOST ABOUT WORKPLACE OFFERINGS.
Across the board, tech talent is most sensitive to workplace quality, its impact on quality of life, and, in turn, how the talent feels about employers. They care most about workplace dining, access to outdoor space, fitness centers and interior design.
Retention takeaway: Consider your industry. Companies with substantial tech talent have the most to gain from investing in a high-quality workplace.
4. QUALITY OF LIFE AND EMPLOYEE SATISFACTION GO HAND IN HAND.
The workplace’s impact on employee satisfaction is only marginally less than its impact on lifestyle.
Retention takeaway: Keep the complete employee experience in mind to maximize overall satisfaction.
Key Finding
Workplace features that increase quality of life have a corresponding impact on how positively employees feel about their employer.
Select a variable:
IMPROVES QUALITY OF LIFE
INCREASE SATISFACTION WITH EMPLOYER
AN UP-TO-DATE WORKPLACE
HIGH-QUALITY FOOD & COFFEE
ON-SITE FITNESS CENTER
OUTDOOR WORK & RECREATION SPACE
PROXIMITY TO SHOPPING, DINING AND RECREATION
ON-SITE CONVENIENCES
HIGH-QUALITY INTERIOR DESIGN
% OF RESPONDENTS THAT AGREE
100%
Irvine Company Office
As a long-term owner who continuously reinvests in its properties and services, Irvine Company has evolved traditional offices into something much more: vibrant workplace communities where collaboration is encouraged and creativity is enabled to elevate business success. The company serves more than 3,000 customers in 50 million square feet of premier workplace communities in Orange County, Los Angeles, Silicon Valley and San Diego, as well as iconic trophy towers in Chicago and New York. Timeless design and quality craftsmanship are paired with Irvine Company’s permanent time horizon, customer-centric brand and pride of ownership.
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©2019 The Irvine Company LLC. All rights reserved. All properties are offered for lease through Irvine Management Company, a licensed real estate broker DRE LIC. #02041810. The information in these materials has been obtained from various sources. While we believe the information to be reliable, neither the Irvine Company nor Irvine Management Company makes any representation or warranty as to the accuracy or completeness of such data and it should be independently verified by prospective tenants. The Irvine Company® is a registered trademark of Irvine Management Company.