Would you like to reduce turnover for your company? I’m going to go out on a limb here and say the answer is probably something like this:
No? Maybe this…
However you prefer to express “yes,” I’m willing to bet that’s your answer.
Everyone wants to reduce turnover, and why wouldn’t you? Turnover is expensive, and we’re not referring to just monetary cost. Financially it can cost tens of thousands to 1.5-2x their annual salary! These costs include:
- Hiring (Advertising, Interviewing, Screening, Hiring)
- Onboarding (Training, Management Time)
- Customer Service and Errors (New employees need time to learn your organizations processes and systems. They also need time to learn your customers and their tendencies. There’s often best practices for particular types of customers and your demographic is likely to be different from other businesses. As with any learning, mistakes will occur.)
- Lost Productivity (Both from the former team member and surrounding team members. The new employee will need time and resources to reach the same level of productivity as the former employee.)
- Decreased Team Engagement (Watching team members go is generally disheartening, and employees will wonder why they left or were asked to leave.)
- Cultural Impact (Each Employee serves a role on the team, and their departure will force these dynamics to change. It’s very possible that the former employee was a catalyst for motivation, inspiration, or general job-satisfaction. They may also have been the individual that helped keep everyone even-keeled during stressful times. In any case, change will need to occur and there will be bumps in the road.)
The value of employees increases over time. The longer an employee is with your company, the better they know your customers and their tendencies, how to quickly solve problems, how to work with the team to be more productive, and provide actionable insights. So let’s keep them engaged and helping your organization grow!
Here’s how we can help reduce turnover:
What are you doing to reduce turnover?