Your top employees may be more valuable than you think.
A look at the real costs of losing your best people and what you can do to keep them.
Keeping qualified employees- particularly your top performers- is a challenge in any economy. The best people are always in demand. However, retaining employees is critical for your productivity, morale and, perhaps most significantly, your profitability.
In fact, recent studies say that replacing employees can cost:
These estimates include the anticipated costs of hiring new workers, as well as the projected costs of lost productivity while the position is unoccupied and the new worker is getting up to speed.
Do the math.Is a middle-level employee earning $50,000 a year leaves your company, just multiply $50,000 by 1.5 (150%). It will cost your company $75,000 to replace this one middle-level worker. That’s the bottom line cost.
Make retention a priority.Retaining your top people is easier said then done. In the old days, you could persuade your best employees to stay with more money, bigger offices and fancy titles. No, savvy companies are rethinking many of their basic employment practices to compete for talented employees. They’re finding solutions that are more about hoe you treat employees. But these solutions require a change in management’s attitudes and behaviors toward employees. And change is not always easy.
Get with the program.Developing an effective employee retention program takes time and resources, but every successful program incorporates a few basic principles:
Start by hiring smarter.Don’t simply match skills and experience. You also need to look fort candidates who fit your company’s culture. Working with a recruiter is a good way to let someone else screen each potential new hire to find the right fit.
Go beyond pay and ‘expected’ benefits.In the hiring phase, these things are attractive. After that, employees feel entitled to fair pay and health coverage. So, if you can, take it a step further by paying for benefits like gym memberships, educational seminars and onsite day care. If you can’t afford those these things, try offering simple work/life benefits like flexible work schedules, telecommuting or a relaxed dress code.
Establish a recognition program.Performance bonuses and incentive trips are great, but they’re not always feasible in tough economic times. More affordable ways to recognize employees who go above and beyond include giving appropriate credit for a job well done, sending thank you emails to the team and notes to individuals, and letting workers come in late or leave early if they’ve been putting in a lot of extra hours.
Encourage growth and development.Make your best employees feel like they’re getting something out of work and have something to work toward. Provide your key performers with valuable training and opportunities for promotion, and encourage them to take external courses by offering tuition reimbursement. Also, make sure your annual performance evaluations are constructive- use them as an opportunity to set goals and follow up frequently.
Most importantly, take the time to listen to your employees. Get their feedback on what you and your company could be doing better. After all, who knows what your employees want better than your employees?
For more information on cutting down on the costs of turnover by developing an effective employee retention strategy, contact your local Ajilon representative today.
To find out more about how a good recruiter can help your team and your company succeed, please contact Adecco representative today.