Having strong employee retention is important to your business, for both the long term health of your business and the overall success of it.
Business owners will agree that retaining your best employees is vital part of operating a healthy business. Whether you’re talking about employees or customers it’s always easier to keep the ones you have rather than consistently having to focus on acquiring them new. The biggest motivator to keep hold of your best staff is the ever increasing cost of recruiting new staff, whether you recruit via agencies or you have a personnel department that does it for you, attracting new talent is an expensive business.
All of this is down to best employee retention. If you keep losing employees, then your company suffers. You have to pay out more on recruitment, training, you lose knowledge; you staff go through a mourning period which leads to insecure coworkers, and finally your staff could lose faith in the business and you.
The loss of a senior member of your team, like an executive, is even more expensive for your business. Because of the more niche skill set and experience you will have to cast your net even further and wider to find a candidate that can fill their boots, plus it’s likely that you will have to incentivise the new candidate with even higher salaries and more benefits.
When an expert analyses your business, employee retention is one of the primary measures they take. As a business, if you are losing your most valuable staff members, all departments in your business can be effected. It has a knock on effect as the new members of staff, who need to be sourced to replace the ones that leave, they then have to fit in and get to know the ropes. This can cause stress for all involved.
One HR Outsourcing company said, “The quality of your staff is paramount. If you lose a supervisor, for example, the whole workforce is affected. Finding a replacement is difficult, less people are qualified and the company ultimately pays the price.”
There are many reasons why an employee might leave your company:
1. The employee is not allowed to speak his or her mind freely. When they do offer ideas, they are heavily critiqued which belittles the person. The employee finally has enough and leaves.
2. The employee does not fit well into the business. The team leave them out. Staff training and bonding days will help with this situation.
3. The employee feels there is no possibility for improvement in the company or promotion.
4. The employee feels that the employer does not care about them or their work.
5. The employee simply wants to leave due to other commitments. There is very little that an employer can do about this as it is out of their hands.
The CIPD see successful staff retention as a fundamental part of successful HR management. A senior consultant for a UK based HR Outsourcing firm was quoted to have said, “Outsourcing is a good way to get ideas about employee retention. They are experts who can review your company and see where you might be going wrong.”