Your employees are the backbone of your business.
No matter how innovative or unique your idea, without loyal workers you are not going to be able to run a successful business. The companies that grow are those that recognize their employees as their most important resource and treat them accordingly. High turnover has a negative impact from an economic perspective as well as on team morale.
As a business owner, you should be looking at retention strategies and focusing on ways that you can keep your employees happy enough to stay working at your company. If you do this, you are likely to retain top talent who can help your business grow.
Here is why you need to work on your employee retention.
As a business owner, especially if you are just starting out, your focus is most likely on keeping costs down and maximizing your profits where possible. High turnover is detrimental to your bottom line. Statistics show that it can cost at least 20% of a team member’s salary to find a replacement.
Hiring and training new employees are timely and costly. Not only is there the application and interview process to consider, there is also the process of teaching the candidate all the necessary skills they need. If you are regularly having to recruit new staff and go through the process of training them, only for them to leave a few months later, you’re going to be spending a lot of money.
Focusing on employee retention is a good financial decision to make. It means you will not be dealing with these costs so regularly nor the disruption associated with team members leaving a workplace.
If you have a high turnover, it is going to be harder for your business to find success.
This is because your work environment affects the momentum of your company and the objectives that you are achieving. If a large portion of your time, resources and energy is being put into hiring, then you will not be putting the same energy into achieving larger goals and achieving your company’s vision.
When you work on your retention, you end up with invested, skilled employees who are aware of the company’s goals and what it takes to achieve them. For success, you need a team who knows the company the way you do and can keep working towards their objectives without needing your guidance and help all the time.
Employee retention is crucial for company morale. You want the atmosphere of your workplace to be one where workers feel happy and motivated every day.
If you have a high turnover, this affects the relationships within the office and how committed staff is to your organization. In a positive work environment, employees enjoy their job, like being at work and feel valued by their seniors. Retention strategies that help to target employee engagement and ensure workers are happy and healthy are essential for a growing business.
Focusing on your retention strategies is likely to a positive impact on workers’ productivity and performance. Happy workers who feel valued by their workplace will be more productive and motivated. If they like being at work, they will be invested in achieving the company’s objectives and the business will be more productive as a whole.
Team members who do not like their job won’t be motivated to make sales to customers or to go the extra mile to complete a task. High turnover creates a disruptive atmosphere and this can affect the workflow in your office as the loss of certain employees can lead to an increased workload for others.
Not focusing on retention means you can end up losing real talent and that means a loss of innovative ideas. It is hard to recruit and find top talent and once you do it is essential that you put effort into keeping those employees happy and satisfied in their position.
Your company’s reputation directly affects your sales. Potential customers and clients do not want to give their business to a company that does not seem to reflect their values and this is particularly true when it comes to how you treat your staff.
If you gain a reputation for having a high turnover or not treating your employees with respect, customers likely to find out about it. As well as this, you should keep in mind that you’re employees are the face of your business and the voice of your organization. If they are unhappy at work, or they don’t feel valued, this will show in their interactions with clients and customers. Happy employees are more likely to speak openly about how much they like your company to both customers and candidates during the hiring process.
Employee retention is crucial to the success of your business. Without hardworking, loyal team members you are not going to be able to carry out the day-to-day operations required for your business to function. If you work on your retention strategies, you will quickly see how valued workers are inspired to do their best work and how this helps your business grow.