How to Hold on to Your Employees
“I quit.” Few words can raise the ire of a manager quite like these.
It can be anywhere from aggravating to devastating to replace an employee. The process can take weeks or months. Never mind the loss of productivity being down a person, and the emotional turmoil this departure can cause the rest of the team.
Some employee turnover can’t be avoided. People move. Others experience life changes that require them to leave their job. Those reasons are understandable, but the fact remains: they still must be replaced. The effects of employee turnover, however, can go beyond dealing with the logistics of hiring someone new.
Does it seem as though you are in a constant cycle of hiring and training?
Understanding what causes an employee to leave can be instrumental in learning how to retain valuable employees.
Generally we hear that people leave their boss, not their company. But it isn’t all doom and gloom. People do leave for a better position, opportunity for advancement or increase in salary even though they may not be unhappy in their current environment.
How does your turnover rate compare?
Turnover rate is a dynamic measurement that can be affected by a number of factors, including industry dynamics, regional areas and socio-economic climates.
In Canada, the retail, hotel and other leisure industries have the highest rates of turnover. Some studies, for example, indicate that the fast food industry has well over 100 percent turnover rate among crew members; while environmental industries have an average closer to 45%.
It may be difficult to gauge your turnover rate as compared to other industries, but a careful evaluation of your annual turnovers may be informative as to the impact employment issues may be having on your revenue.
What effect does employee turnover have on your other staff?
High turnover rates can have a detrimental effect on the remaining staff members. Not only are they expected to pick up additional workload, they begin to question their own level of satisfaction with their job. General feelings of unease can create a domino effect of exits, leaving you understaffed and over budget.
What are the true costs of employee turnover?
According to one study, it can cost the equivalent of 2 – 3 months of the employee’s salary to replace them. If the employee is at a management level or higher, those costs can soar up to the equivalent of 18 months’ salary.
Replacing an employee brings additional payroll expenses, as other employees must work additional hours to make up for the lost personnel. Management must use productivity time to review applications, conduct employment interviews and perform reference checks. Once a replacement has been hired, there are additional expenses involved in training.
If your employee turnover rate is low, the impact of staff replacement isn’t great. For most companies, however, staff turnover costs can be one of the largest expenses they face. Is there a way to prevent this revenue drain? Studies reveal that not only is it possible to reduce employee turnover, it is neither expensive nor difficult.
Employee engagement is one of the most effective means of preventing staff turnover. Strong engagement that begins during the recruitment process and continues through professional development can save corporations millions of dollars. It can create high employment retention and improve productivity, increasing revenue.
How can you cultivate this type of environment in your organization?
Staff development and corporate training. A well-crafted development program can combine the power of goal setting and planning with effective leadership training. Investing in the continued training of an employee can pay off with astonishing results.
Companies that spent less than $1,000 per employee on staff development had, on average, 15% higher turnover rates than that of companies that spend over $1,000. Decide. Do you really want that high-growth corporate team?
Cultivate a positive workplace environment. Demonstrating a genuine interest in the well-being of employees is a powerful way to show employees that you care. Evaluate the reasons given for staff turnover and then made the necessary changes to reduce their occurrence.
We’re experts in the development and implementation of goal training and leadership programs. Contact us today to find out how we can help you increase revenue and improve employee retention rates.
Still on the fence about training events? Contact us to find out about our proven track record of success with My Big Idea™ workshops and how we can help you increase revenue and improve employee retention rates.