Losing an employee is so costly that there are even a calculator for it. Voluntary turnover costs money, but turnover has many costs that never register directly on a spreadsheet.
● Losing your best people means losing your reliable winners, your constant innovators, and your most effective problem solvers.
● It can break down team morale.
● It can mean lost customer relationships.
● Frequent voluntary turnover has a negative impact on employee morale, productivity, and company revenue.
● Recruiting and training a new employee requires staff time and money.
For many employees that are on their way out, disengagement is one of the top reasons they end up making the decision to finally leave. Disengagement costs the global economy $7 trillion in lost productivity, but when an organization utilizes exit interviews, they receive valuable comments and information that help explain the sources of turnover.
For organizations to thrive in today’s economy, finding and retaining the best employees is vital. This is especially challenging for small businesses and nonprofit organizations who must compete with larger businesses, and larger budgets, for top talent. Benefits play a large role in employee retention, and employees want benefits personalized to their needs.
So, what can you do about employee retention? Some employee retention tips include:
● Benchmark your employee retention rate.
● Use proven retention strategies, not guesswork.
● Don't assume employees are happy. Train your managers to have frequent, meaningful conversations with employees about what really matters to them. What's frustrating them? What are their dreams? Where do they want to go?
● Implement a health benefits program, like a health reimbursement arrangement (HRA)
● Conduct exit interviews.
● Establish an employee recognition program.
Organizations must recognize that improving employee retention is not as complicated as it may seem at first as long as the data is gathered properly, an effective action plan is established, and the right new talent is obtained to create success and reduce turnover.
Looking for ways to recognize your employees and keep morale and company engagement up? Check out our Co-Workers Corner!