Staff turnover is a fact. Some team members may leave for another opportunity. Others may be released due to a violation or work performance.
But here’s another fact: The cost of replacing an individual employee can vary from one-half to two times the employee’s annual salary, according to a study by Gallup. Losing an employee can lead to reduced efficiency, lack of morale and ultimately loss of revenue for your business.
On the other hand, companies that prioritize retaining employees can save money, improve relationships and create a more energetic workplace culture. Where does your workplace end up and what can you do to keep your team going? Read on to learn the benefits of retaining employees.
What is retaining employees?
Simply put, retaining employees is a company̵7;s ability to retain employees and avoid turnover. Low employee retention occurs when team members voluntarily or involuntarily leave a job after a short period of time. A workplace with high retention has an experienced team of employees who stay for several years or entire careers, buy into the culture and care about the company’s future successes.
What are the benefits of retaining employees?
There are countless benefits to keeping senior employees from cost-effectiveness to workplace safety. See all benefits.
- Improved productivity. The more experienced your team members, the more efficient and productive your business will become. You can reduce the time it takes to perform tasks when your employees have a good grasp of performance expectations and their roles and responsibilities.
- Reduced costs. Recruitment is a costly expense for companies. In addition, training and onboarding can be expensive, especially when that training drags individuals away from their usual tasks or requires them to spend longer hours.
- Increased security. If you work in a practical field, your team members will be more confident the more time they spend on machines, equipment and the work environment. This may mean fewer claims for compensation from workers against your company.
- Reinforced morale. Your team members are more likely to stay when you create a safe, healthy and happy workplace. And when they do, they will form bonds with each other and feel an increased sense of morality at work.
- Improved customer relationships. Your customers deserve quality and consistency from your team members rather than frequently changing contacts and processes. They also benefit from your high employee turnover.
How can I improve retention?
The good news is that you can improve your team retention by making small changes. You’re probably already doing some things right. But to create even greater success for your business, our experts recommend you:
- Offer competitive salaries and benefits
- Be transparent about the position and performance expectations
- Promote a safe and positive work environment
- Provide ample business orientation and training for the job
- Offer career development / ongoing mentorship opportunities
- Keep clear lines of communication between the team
- Plan team events / activities
- Provide positive feedback and conduct scheduled performance reviews
- Take the time to hire the right person
- Evaluate job seekers to ensure they fit the corporate culture
- Provide severance pay for outgoing employees to learn from their experiences and improve your processes
Start taking small steps today to realize the benefits of retaining employees. A local, independent agent can equip you with additional tips, tools and business coverage.