You might be asking yourself: “What’s the big deal? They should be working to stay with me, not the other way around!” But that’s an old way of thinking -- and that thought process will give someone who actively works to create an enjoyable work atmosphere the opportunity to snatch your best employees right out from under you. Here are a few other reasons having solid worker retention is in your best interest.
1. You’ll have a better-educated staff.
It’s a simple logistical fact that the longer your staff is employed with you, the deeper their knowledge base will go, the more finesse they’ll have working the finer details of your organization, and the more competent they’ll be.
Long-time employees are like databanks of historical knowledge about your organization’s successes and failures, and can utilize that knowledge to guide your efforts in the future. Plus, when your retention rates are higher, you can spend the money that would’ve gone to training new employees on developing your current employees.
2. You’ll save money.
If you’re constantly hiring, you’re hemorrhaging money -- and putting yourself at risk for lots of new costs on a daily basis. New hire training costs an average of $702, and that doesn’t include the extra man-hours you’re pumping into the hiring process. There are the labor costs of the interview process, the extra hours filling the position the interviewer would’ve otherwise been doing, and the hours spent filling the original vacancy.
Then you can factor in productivity cuts (it takes around 90 days on average to bring a new hire up to speed), and the constant risk of a bad hire. Background checks and personality/aptitude tests can minimize these risks but they still exist -- and if you do wind up with a bad hire, you’ll incur all of these costs over again.
3. Better customer service.
Your customer base expects consistent, reliable service. Often they will develop strong relationships with longtime employees, who are able to anticipate and provide for their needs. There’s a learning curve with new hires. The potential for error and poor communication goes drastically up. Customers who returned because of their relationships with old employees may seek out new locations where they feel more comfortable.
4. Better morale.
Employees notice when you can’t manage to keep staff on board, and they take it as a definite sign that they most likely won’t be around long either. Even if they don’t have a reason to leave at the moment, they’ll begin to wonder when their reason will occur or if their jobs are secure. Even worse, if firings happen often and word spreads, your employees may begin to doubt the competence of management. When morale sinks, so does productivity.
5. You’ll be more competitive.
Ultimately, a low turnover rate means your company is somewhere people want to work -- and that means you’ll draw the best talent in the industry. You have more room to negotiate when it comes to hiring, and you’ll have experts just dying for a cubicle in your office.