HR professionals estimate that it costs nearly 1.5 times the employee’s yearly salary to lose them. Seems high right? Think of all the factors included from the time you recruited the particular individual to the time you hire a replacement:
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- Paying recruiter/HR person to recruit the candidate (job ads, meetings, etc.)
- Training materials
- Managers dedicating valuable time to training employees
- Severance pay
- Costs of benefits for employee
- Cost to recruit and hire an entirely new employee
- Indirect costs like employee morale and stress of increased workloads
Obviously organizations want to avoid employee turnover as often as possible because frankly, you can’t afford to keep losing employees.
Low Cost Solution: Retention
Avoid a high turnover rate by proactively recruiting and retaining your employees. This doesn’t mean ‘baby’ them and watch their every move to make sure they don’t leave, it means you have to be conscious of what your employees want and how you can help them meet their goals. Here are 4 simple tips to reduce turnover and retain your most valuable asset.
1. Don’t skimp on praise and recognition. When your employees perform well, let them know they are appreciated and valued in your organization.
2. While recruiting a candidate, look at more than their qualifications, does their personality fit with the people they are working with? Will they mesh well with the culture of your company? If you hire someone based solely on the skills you’re looking for and they don’t fit in with the culture, it’s likely they will leave sooner than later because they don’t enjoy their working atmosphere.
3. Provide opportunities. Give your employees the chance to grow by providing opportunities for a promotion if possible. Another idea is to create incentive plans where employees can work towards a goal and be rewarded for achieving their goal. Give them something to work for whether it be simple milestones or a promotion in the future, employees want future goals and opportunities.
4. Make your company a great place to work. Allowing for a work/life balance as well as providing benefits and reasonable PTO are very appealing perks to employees. You want employees to feel lucky to work at an organization that treats them well rather than overworking and under-providing.
Try to take these simple pieces of advice into consideration whether you’re currently hiring or looking to hang on to your top talent.
Want to learn about how we help companies save enormous amounts of time and lower employee turnover costs? Check out our services page!
