Why It Pays to Retain Good Employees

Retaining Employees- Is This Crucial?

Although reports can’t agree on one price, most estimates put the cost of losing an employee at two times that of the employee’s annual salary. In addition, that cost can rise quickly if we are talking about replacing executives.

Why It Costs So Much to Lose An Employee

The old employee takes his company knowledge with him, which is hard to put a price on but is significant
You’ve got to advertise, interview, screen, and hire, all of which take serious time
There are on-boarding costs such as training and staff time spent with the new employee instead of working themselves
Productivity is lost while companies look to replace an employee, and as the new employee is getting up to speed
Errors increase due to the new employee being unfamiliar with the company and its policies and operating standards

The true costs can never be fully known as most companies don’t track the actual price of replacing employees. There are certainly additional costs not accounted for that add to these losses as well.

How to Improve Employee Retention

Adopt a good benefits program that attracts high-quality (and happy) employees
Offer career development and leadership training
Put a survey in place to assess employee morale and consider a suggestion box system
Consider offering high-value employees more benefits
Always give exit interviews to determine WHY the employee left so you can change for incoming staff

Why Recruitment is Key:

Employee retention efforts often start during the recruitment process. Hard data evidence shows that employees are more likely to stay with a company that gave a realistic view of its corporate culture, advancement opportunities, and role expectations. Providing good benefits packages also attract top talent and keep them around. Being able to rely on your team is important to company culture. The longer that employees remain at a company, the more it starts to feel like home. Allowing your employees to be completely comfortable with their coworkers is key to improving trust, communication, and productivity.

Published under

Leadership/Management

Retaining Employees- Is This Crucial?

Why It Costs So Much to Lose An Employee

How to Improve Employee Retention

Why Recruitment is Key:

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