It’s Going to Cost You!
Employee turnover is costly. Once you’ve taken into account the direct expenses, including recruiters fees, training, new office setups, costs such as lost productivity, lost relationships (with clients, suppliers and industry networks), and also considered the impact of staff changes on culture and climate, staff turnover can cost anywhere from one to three times the cost of an employee’s annual salary. But it’s not just a financial cost. When you lose an employee, you lose their experience, skills, relationships and knowledge. It also impacts team dynamics and often the job satisfaction, engagement and stress levels of co-workers and other staff – especially if they have to pick up the slack when a colleague leaves.
Losing staff is therefore going to put a huge strain on your organisation. What can you do?
Do something NOW – don’t wait till it’s too late
Know who you need to focus on – Take care of top performers and critical teams.
Help your staff understand how much the world has changed – help them see that the grass is not necessarily greener elsewhere, and also help them to see the increasing value of longevity and depth of experience.
Hold managers accountable for retention – When times are tough, companies typically encourage leaders and managers to focus on short-term financial performance at the expense of everything else. But now, your company must make a deliberate effort to hold leaders and managers responsible for retention – and support them with the right tools and training.
Don’t kill survivors by overloading them with extra work
Get your compensation right – It’s not the most important issue, but if you get it wrong it will be a deal breaker.
Ensure you provide non-financial benefits as well – it’s not all about the money.
Help people realise the value of the work they do – Be sure to encourage your staff in their day-to-day activities and show them they’re making a difference.
Tell them the truth, and tell it as soon as you can
Fill up your talent tank – ‘Human resources’ (I use that phrase deliberately) are now as cheap as they’re ever likely to be. Make sure you fire up your recruitment engines before your competitors do.
How do you keep your employees committed and engaged?