Do you have any real idea of the cost of employee turnover to your business? An organisational expert did the maths and discovered that it costs, on average, £47,000 to replace just six entry level employees. So, without a doubt staff turnover is not only a hassle but also costing your company a significant amount of potential profit. The loss of productivity is another factor to consider as the more people who leave the further staff moral can fall which also affects your profitability.
Staff retention is the biggest single headache across HR departments and finding the key factors to keep your key staff onboard and grow with your company is not so difficult, it just needs more communication. Implementing some new strategies into your everyday business routine can dramatically reduce your staff turnover rate and greatly improve your reputation as an employer. So how can you retain those great employees? Here are few tips to lower your rate of staff turnover.
It's pretty easy to big up a CV and blag your way through an interview but it's much harder to fake a motivated and positive attitude. When you are recruiting your next employee focus more on how the candidates react to certain situations to ascertain how well they will slot into your company culture. Sometimes qualifications aren't worth the paper they are written on if that person is a bad fit for your company as a person.
The average pay rise is now 2-3%, a drop from the 5% not too long ago. Finding the right balance when it comes to pay rises can be a headache but by trying to cut corners by giving your staff the minimum pay rise you can get away with could cost you dearly in terms of recruiting their replacements. You also have to look at it from your employees point of view and how a decent pay rise shows your appreciation for your team. It’s well known that employees who feel appreciated become even more productive; a win win situation.
No amount of money is enough to keep asking an employee to constantly sacrifice their personal life to work hours way outside of their remit. The health of an employee, their families and their friends are all as, if not more, important than their career and if you continue to put them in a predicament they will eventually walk out the door. To retain the staff you feel you cannot do without give them flexibility to allow them to achieve that work/life balance.
Even at work people need social interactions. It doesn't matter how introverted you may think your team is. Creating a social workplace for them to come together will make them work harder and be more productive. Holding team lunches and taking them out once in a while for happy hour will all encourage them to interact with each other and talk about other things other than work. This all goes towards building the kind of company culture every company wants, and which you cannot have without great employees.
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