Losing a string of employees can be damaging to your business in a number of ways. It can dent the morale of your remaining workforce. It can tarnish your company’s image. It can add to everyone else’s workload – increasing stress levels. And not forgetting, of course, it can burn a hole in your bank balance.
The cost of staff turnover
According to Oxford Economics, the cost of replacing a single employee, on average, is said to be around £25,000, and when you think about it, it’s probably not all that surprising. You’ve got to cover things like:
– productivity losses;
– advertising costs;
– agency fees (if you don’t have an in-house team);
– training and development;
– the time it takes for a new starter to get into the swing of things; and
– management time to sit in interviews.
With all that said, it’s only natural to want to keep your employee retention high and your costs low. To help you do just that, here are three ways you can start improving your turnover today.
1. Value and appreciate your employees
Just because you value your employees, it doesn’t mean they feel valued. Don’t stop thanking someone for something just because they do it every day, and do:
- show a genuine interest
- make allowances
- be transparent
- provide perks (they don’t have to be lavish)
- offer praise, feedback and learning opportunities
- ask for input
- keep employees in the loop.
2. Don’t forget to recognise and reward
Whether it’s an Amazon voucher for the rep who made the most sales or a certificate for the employee of the month, put a clear and fair reward and recognition strategy in place, and one you know your employees want.
You’ll benefit from a more motivated and engaged workforce, and your employees will benefit from the added layer of appreciation and satisfaction when the light’s on them. There’s no point investing in rewards that don’t serve their purpose though, so before you start introducing them, consider sending out a survey to see what makes your employees tick.
3. Communicate clearly and consistently
Businesses hire employees to help them achieve their goals, however, they often forget it’s a two-way street. It can’t be all take – you’ve got to give a little too, but the best bit is achieving this is simple:
a) Listen to your employees and understand what their career ambitions are.
b) Act on what you’re told, and do everything you can to provide learning and progression opportunities.
c) Make sure your management team is on board with your approach.
d) Ensure your development plans are consistently rolled out – from the top all the way to the bottom.
Why employee retention should be your top priority
Prioritising Retention for Small Businesses
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