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Lifers vs. Job Hoppers: Why Retaining Long-Term Employees is a Smart Business Move

Written by Ahola Corporation | Dec 12, 2024 2:19:51 PM

In today’s workforce, employees typically fall into two categories: lifers and job hoppers. While job hoppers may bring fresh ideas and outside perspectives, lifers offer a unique and invaluable set of strengths that can be difficult — and costly — to replace.

Rather than viewing these groups as opposites, it’s more useful to understand the distinct skills each group brings to the table. Lifers exemplify loyalty, industry knowledge, and institutional memory, while job hoppers offer agility and exposure to diverse experiences. But for companies, there’s a strong business case for valuing and retaining lifers.

Who Stays and Why?

According to the U.S. Bureau of Labor Statistics (BLS), the median tenure for wage and salary workers in 2022 was 4.1 years — unchanged from 2020, even amid the COVID-19 labor shifts. Notably, those in management roles tend to stay in their positions longer, and the same holds true for employees in industries like education, training, libraries, engineering, and law. In contrast, industries like food services see the highest turnover.

A survey conducted by recruiting firm Michael Page uncovered what motivates employees to stay for the long haul. Here’s what lifers value most:

  • Deep industry knowledge (57%)
  • Developing teamwork skills (50%)
  • Work friends (40%)
  • Industry connections (41%)
  • Flexible work options (39%)
  • Good relationships with managers (29%)

While job hoppers may chase higher salaries or fresh challenges, lifers often prioritize predictability, stability, and growth from within. They appreciate having a clear sense of what to expect when it comes to pay raises, benefits, and promotion opportunities. They also value the respect and trust they earn over time.

The Benefits of Retaining Lifers

For businesses, the benefits of retaining long-term employees go beyond simply reducing turnover costs. Lifers offer:

  • Institutional Knowledge: They understand the company's inner workings and can help navigate corporate changes like mergers or reorganizations.
  • Customer Insights: Lifers have built relationships with customers and understand their pain points, giving companies an edge in customer service and experience.
  • On-the-Job Training: Pairing experienced employees with newer hires for mentorship and cross-training can accelerate onboarding and reduce the time-to-productivity for new employees.

Turnover is expensive. It’s not just about replacing a body in a role — it’s about the cost of recruiting, hiring, and training, not to mention the disruption in workflows. According to SHRM, the cost of replacing an employee can range from six to nine months of their salary.

How to Retain Your Most Valuable Employees

Retaining lifers doesn’t just happen on its own. Employers must be proactive in keeping their seasoned employees engaged. Here are a few strategies to keep your key players on board:

1. Offer Financial Incentives

Former employees may have the leverage to renegotiate salaries with competitors. To stay ahead of this, consider offering raises, spot bonuses, or enhanced benefits to loyal team members. This approach is similar to the logic behind sign-on bonuses for new hires. But before moving forward, it’s important to understand how sign-on bonuses affect retention.

2. Prioritize Career Development

Employees who feel stagnant are more likely to leave. Provide ongoing training, mentorship, and opportunities for growth. Allow lifers to take on meaningful projects and explore creative solutions. If you’re not sure where to start, watch our free webinar, where Ahola’s ProActive HR Consultants share key strategies to foster long-term employee commitment and success. Watch the webinar here.

3. Foster a Culture of Trust and Recognition

Lifers who feel undervalued may look elsewhere. Ensure that long-term employees know they are valued by:

  • Listening to their ideas and encouraging creative problem-solving.
  • Reinforcing job security and assuring them their roles are safe.
  • Celebrating milestones like work anniversaries and major accomplishments. A thank-you card, public recognition, or lunch with leadership can go a long way.

4. Offer Flexibility and Well-Being Support

Flexible work options remain one of the top reasons employees stay. Whether it’s remote work, hybrid schedules, or flexible hours, offering autonomy over schedules can keep employees loyal. Consider adding well-being initiatives, like mental health support, stress management resources, or access to wellness programs.

Don’t Underestimate the Value of Lifers

It’s easy to be dazzled by the shiny new talent entering the workforce, but employers should think twice before overlooking the immense value of long-term employees. Lifers aren’t just "there" — they are your company’s knowledge keepers, cultural anchors, and problem-solvers.

Yes, hiring fresh talent is essential, but not at the expense of losing your most seasoned team members. Make it a priority to create an environment that rewards loyalty. You’ll be surprised how much value lifers bring to your organization — and how much it costs if they leave.

At Ahola Payroll & HR Solutions, we understand the challenges of retention and are here to support you. Stay connected with us for expert insights and strategies for building a committed, engaged workforce.