In a world where 1 in 4 employees quits within 90 days, how do you hang on to your best and brightest? Software company Mobile Jazz has come up with a winning formula which any company can follow – even if they don’t have the financial firepower of Facebook or Google.
At a time of near-full employment, with a booming gig economy and a scarcity of digital skills, it’s becoming harder and harder to cling on to talented staff. Research from LinkedIn shows the average global staff turnover rate is now 10.9 percent, and over 1 in 4 employees quit within the first 90 days of their new role.
For employers, this trend is potentially disastrous. If someone new quits, it paints a picture of discontent within the company and can destabilize more senior employees. If the resignee is a long-standing member of the team, they take a huge bank of knowledge with them, which will take months if not years to replace.
So it’s crucial that today’s firms do everything they can to maximize employee retention rates. For companies such as Mobile Jazz, this is doubly important; we’re trying to establish ourselves in the technology sector, where competition is at its fiercest. We went fully remote last year, which could have presented an additional challenge, as many people still believe that in-office jobs offer greater security.
We’ve put a dedicated staff retention system in place, drawing on the advantages of being a distributed company, and the benefits are clear. Most of our employees have been with the company for five years or more, while the average stay for people in top tech companies is only 2.1 years. None of the people who were with us when we became a fully remote company last spring have decided to quit. They’ve supported our vision and bought a ticket for our journey.
Author the Authors
Stefan Klumpp is an entrepreneur and investor who founded Mobile Jazz in 2011. He has since steered the company to seven-figure turnover, working with companies such as Airbus, Skyscanner and AVG. He previously worked on Stanford University’s driverless car project and is a prominent figure in the global startup community, thanks to his role as co-organizer of TechCrunch Mobile in Barcelona.
Gareth Platt works as a consultant with Mobile Jazz and has previously worked with a number of prominent business titles including The Wall Street Journal and Dow Jones Newswires. He blogs regularly on the subject of telecommuting and the future of work.