Your business needs a certain level of consistency to operate at its best. You depend on the expertise of your staff to keep things running smoothly. That's why it's critical to invest in employee retention.
A high turnover rate in your company can lead to inefficiencies. If you can avoid replacing staff members, everyone benefits.
Better Teamwork
People who work together for some time develop strong relationships. Coworkers who have been together for a while understand each other's styles, habits and preferences. They can work in sync and be more productive as a result.High staff turnover makes it hard for coworkers to establish rapport. Seeing friends and colleagues leave the company can plant seeds of doubt in those who stay behind, making them wonder if better opportunities lie elsewhere.
Higher Morale
If your company is known for low turnover, it can boost morale among your staff. After all, there's a reason — or many reasons — employees want to stay. They might include reaping the rewards of long-term success, becoming comfortable in their jobs, building company culture and feeling that they belong. Other causes are tangible if your company has a meaningful employee recognition program, career development, sales bonuses or other incentives.Increased Productivity
A vacant position means a slowdown. Other employees must take on extra work without neglecting their regular duties. They might make mistakes or unintentionally cause delays. Once the open position is filled, colleagues must bring the new hire up to speed, and that takes time.Retaining employees means that daily operations run smoothly. There are fewer interruptions and distractions as employees can focus on their jobs.
Reduced Turnover Expenses
When employees leave, they incur business costs. Hiring managers spend time on:- Exit interviews
- Posting vacant positions
- Recruiting talent
- Interviewing candidates
- Performing background checks
- Completing paperwork
If positions remain unfilled for a length of time, the hours can start to add up. The median cost of replacing an employee is around 20% of the position's salary. Employees in high-level positions can cost a shocking 213% of their wages to replace. If companies fill the same jobs frequently, they can pay these amounts over and over.
Retaining an employee can save your company money, perhaps more than you realized.
Knowledge Preservation
When employees leave a company, they take their knowledge with them — possibly to a competitor. The experience they gained in their positions, familiarity with the company culture, and just knowing how you do things at your business all walk out the door when they do.Keeping an employee keeps their skills and experience under your roof, not someone else's.
Improved Customer Service
Satisfied, engaged employees pass on their job satisfaction to customers. This can happen naturally, as a happy person spreads a good mood to others. It also happens because employees who feel supported will convey positive opinions to their customers. They will also use their knowledge and experience to effectively solve customers' problems, leading to greater satisfaction.On the other hand, losing employees can lead to a downturn in customer satisfaction. Your customers may lose a trusted sales representative or account manager or grow impatient with inexperienced employees. If high turnover becomes public knowledge, your company's reputation may be at stake.
Strategies for Retaining Employees
Because employee retention is so important to your company's success, it's essential to invest in methods that make people want to stay. You might consider career development opportunities, a wellness plan, options to work remotely, flexible hours and retirement benefits.One of the most important steps you can take is to invite open communication at all levels. This tells your staff members that you want to hear their opinions and ideas. Ask them what they like about their job and what you can provide to make it more productive, easier or better.
It may seem like more work on the front end, but investing some of your resources into employee retention can polish your brand's image, improve your bottom line and increase employee satisfaction.
