Most business owners know that good employees make their businesses work. Your business can have the best lineup of goods and/or services in your industry. However, without well-trained and devoted employees, those goods and services can’t be delivered effectively. That’s why little can hurt a business as much as regular turnover of good employees.
Have you lost some of your better employees? If so, you have probably seen the cost first hand. You have to put time into recruiting and training a new employee. Not to mention – your business capacity is reduced while you work to fill an empty position. Those costs can be even higher if the employee has good relationships and loyal customers. If the employee was well liked, their loss can lower morale.
Experts claim that the loss of an employee costs his or her employer anywhere from 20 percent of the employee’s annual salary to as much as 50 to 75 percent of the employee’s annual salary. The costs are estimated to be higher the longer the employee has been with the company. This includes the higher the employee’s skill level is and the more that employee makes.
So how can you reduce the costs of employee turnover?
The easiest answer is to nurture an environment that encourages quality employees to stay with you long term. Some ways you can help keep your valued employees are to:
- Encourage employee growth. Few people are happy doing the same exact thing year after year. Without being presented with a new challenge, a new goal, or a chance to grow their skills. Make sure that your employees have the opportunity for professional development and the opportunity to grow with your company. That can be as simple as sending them to corporate training, having them mentor new employees, or assigning them to lead company initiatives.
- Make sure your employees feel valued. To be satisfied in their jobs, most employees need to feel the value of their position. They need to understand that they have a positive impact on your company and are a valuable part of your team. Never overlook the opportunity to praise your employees for a job well done. Additionally, treat your team to a celebration of company goals being met or exceeded.
- Create a culture of respect. Nothing fuels employee turnover like an unhappy or toxic work environment. Work to build a culture of respect and caring. Your employees should be kind to one another. They should feel part of the team and be quick to help one another out. It is your responsibility to foster that culture.
Most importantly, never assume that employees are happy with their position and loyal for the long haul. Listen to your employees when they speak to you, and welcome feedback. Make sure that when you review your employees, you talk to them about their career goals and their happiness in the workplace. This way you can work to create a plan to keep your best employees doing their best for you!