It goes without saying that happy employees make for a financially healthy business but it’s not just the bottom line that makes keeping your best minds and staff on board essential. Building and maintaining a happy workforce holds all kinds of added benefits.
It keeps the ball rolling
Implementing an employee retention strategy helps a company’s productivity and maintains a consistent level of service to its clients and customers.
Think about it. Each time an employee leaves their position, the processes they were responsible for grind to a halt. This in turn affects other employees in the team who have to take up the slack. It’s not so hard to imagine how this domino effect can work its way through much of the department until a new person takes the vacant position.
However, a new employee isn’t necessarily the immediate silver bullet a department needs to pull them out of their nosedive into unproductivity. Training can take an awfully long time and current staff may find that they spend more time explaining process to the office newbie rather than focusing on their own work.
Retaining staff means less time spent on training and more opportunities for streamlining workflow and increasing output. In other words, it builds momentum and keeps that ball rolling.
It attracts new talent
Finding new talent is one thing – you have TalentDash to help with that – but convincing those candidates to buy into your company’s vision isn’t always the easiest task.
When candidates consider an offer of an interview or even a job there are a myriad of factors that will affect their decision, but perhaps one of the most important is the happiness of your current staff. Money and benefits are all well and good but if a company has a reputation for an unusually high turnover of staff, they may find the best talent hard to acquire.
Retaining employees for extended periods of time speaks volumes of a company’s dependability and dedication to their staff’s progress and general happiness. And this is quite often a company recruiter’s most notable selling point.
It boosts morale
Making sure that everyone has a fulfilling role within the company is no mean feat but allowing each employee the room to develop and potentially move onto bigger and better things should be a given.
Ensuring that they have these goals to aim for encourages employees to stay on board instilling a sense of security. And when people feel secure in their jobs, they feel happy which in turn makes for a marvelously positive working environment.
This positive environment is an incredible morale booster as staff become familiar with each other’s roles and responsibilities. As a team of long-term employees, projects are easier to handle, dealing with issues is a breeze, and with everyone working in the same direction, they generally feel much happier.
It keeps turnover to a minimum
A healthy level of staff turnover is actually a good thing for many companies. It allows new minds with fresh ideas to join the team and can shake up a department or project that is somewhat stagnant.
However, that’s not to say that there should be a monthly welcome party for new employees. As we mentioned earlier, a high turnover of staff can damage a company’s reputation as an employer which is less than desirable when trying to attract an industry’s leading lights.
The ideal rate of turnover should be quite low, but anything below 15% annually is pretty healthy. And need we say that the best way to maintain this healthy turnover rate is through employee retention? Of course, we don’t.
It keeps costs down
Okay so we had to come to it in the end. The cold hard fact is that money is a factor that we can’t ignore when discussing the importance of employee retention. And to be perfectly honest it’s probably a far more important (read as costly) factor than you think.
The entire recruitment process is an expensive undertaking, and even if a potential candidate is willing to accept a lower salary than the previous employee, there’s no way a company can avoid taking a sizeable financial hit.
David Rosnick from the Center for Economic and Policy Research created a turnover cost calculator that includes values for the various factors that affect the cost of employee turnover. Using this calculator, we see that replacing an employee that earns around $100,000 will potentially cost almost $30,000. This is a staggering figure and higher than the accepted industry standard of 20%.
It, therefore, stands to reason that employee retention should be high on any company’s list of priorities. It also goes a long way to explaining why companies such as Mars Inc. and CarMax go above and beyond in their employee retention strategies.
How to keep your employees
There are many ways to improve employee retention and reduce rates of turnover but here are some of our favorites.
• Team-building exercises and trips – These encourage staff to forge bonds making work a more enjoyable place.
• Appraisals – Keeping employees informed of their progress underlines their importance to the company and gives them a goal to aim for and tangible results to take pride in.
• Incentives – Many companies offer bonuses and cash incentives, but sometimes more creative incentives bring better rewards. Company shares and equity not only offer financial gain but also create a link between the individual and the company.
• A healthy work-life balance – Ensuring that employees understand that you care about their wellbeing and their personal life is a huge factor in keeping your best employees.
• Give employees options – This may include the chance for study, mentorship, or even the opportunity to move across departments and try something new.
Employee retention has always been one of the most important aspects of running a successful business. After all, as the saying goes ‘a company is only as good as its employees.’
Remember, that employee retention should always start in the hiring process as a positive candidate experience is the best possible start to life in the company.
Being a recruitment solution tool, TalentDash is the top of the recruitment funnel, helping you to have a broader and more thorough search of candidates meeting your needs. now to get a free preview of your 1st search, #MakeThatDash with TalentDash!