As an employer, you know how painful it is to lose a good employee – not only the shock of hearing the initial devastating news but also the collateral damage afterwards. Morale, engagement, productivity, quality, and even safety may be threatened.
In many more ways than one, it pays to hold onto your top talent.
- In one recent case study, it was noted that retaining a high-performing salesperson for three years, versus two, along with related onboarding and management costs, made a $1.3 million difference in a company’s bottom line.
- According to a second source, the average economic cost of turning over a highly-skilled job is equal to 213 percent of one year’s compensation for the role.
- There’s a simple formula to calculate your company’s turnover cost: Multiply the number of unwanted departures by the average cost of those resignations.
How to Improve Retention
Not only do you need to quantify and measure the cost of employee retention, but you also need to think strategically about how to minimize it, for your company to stay competitive.
- Begin by hiring right, the first time around. Never cut corners when it comes to your hiring process. This includes thorough reference, background and screening checks.
- Promote your employees’ growth and development. Get to know each one individually and help them achieve their career goals. Promote from within when possible, especially if someone has expressed a specific interest in a new role. Support employees as they advance: help pay for schooling, certifications, professional memberships and conferences.
- Show that you care. Support employees’ work/life balance. Find creative ways to recognize milestones and superior performance. This has taken on new meaning today, as the after-effects of the global coronavirus pandemic continue to play out. It’s never been more critical to put authenticity, respect, and trust at the core of your company culture.
Partner With the Experts!
The right employment screening process is critical to ensuring that you make the right hires and avoid costly turnover. Chane Solutions is a trusted source for all your background screening and drug testing needs, so you never short-change these critical steps. Read our related posts or contact us today to learn more.