No matter what industry you work in, retaining valuable employees is essential due to the many benefits it brings to your company. When employees leave, you may have your pick of the litter due to the competitive job market, but your high turnover can have many damaging effects to your business. Here are the main reasons for ensuring sufficient retention of your staff.
Save precious time and money.
How you use your time has a direct effect on productivity, therefore when you have high turnover, a significant amount of your time is wasted on installing new employees. Conducting interviews and supporting a new employee in their new role through training and mentoring all takes time, thus productivity will inevitably drop. Training new employees also costs a substantial amount of money. In addition, further expenses include the posting of job ads, background checks, psychometric tests, as well as the organisation of assessment centres and interviews. Furthermore, to cope with the workload after an employee leaves, you may end up paying other members of staff to work overtime or hiring temporary workers. When the costs involved in the hiring process are added up they can be more than double the amount of the annual salary of the member of staff you’re replacing. Therefore you will save a substantial amount of money if you make the effort to retain your employees.
Maintain a positive working environment.
High turnover can become unsettling for the staff who are left behind as they begin to question why their former colleagues decided to leave the company. With this playing on their minds, they will start to hone in on any negatives and perhaps even think about moving on themselves. Productivity will also be affected as the success of projects often relies on strong colleague relationships, which high turnover will damage due to the influx of people coming and going. Relationships built on trust can be formed with the new hires, but of course this will take time, therefore reducing productivity. Therefore to keep up morale and ensure productivity isn’t affected dramatically, it’s best to support your staff as much as possible so nobody feels the need to leave.
Preserve customer relationships.
Many industries rely on great customer service to both establish and maintain good relationships with clients. High turnover can damage the bonds your company has formed with clients as they will be forced to enlighten each new member of staff with their requirements. If this happens continuously then your clients will feel their interests are not being looked after sufficiently, therefore they will be encouraged to abandon the relationship with your company and seek a competitor. So if you encourage your employees to stay put, then your clients are also more likely to remain faithful.
So don’t just ignore your high turnover, take the steps to reduce it in order to save yourself time and money, maintain morale in the office and preserve client relationships. Now you know how important it is to retain your employees, find out how to do so by clicking here. The first step towards reducing high turnover is to ensure you’re hiring the best candidates to start with, which you can do thanks to the flat-fee recruitment strategy and screening of candidates eRecruit solutions provides.