Posted on: 20 May 2021
Save your business money by reducing staff turnover
Whilst employee turnover can give businesses the chance to inject fresh ideas and techniques, a good employee isn’t easy or cheap to replace. Promotions and lay-offs can allow for positive changes in a business, but what problems can occur from turnover being too high?
Bringing new employees into your company comes with recruitment costs and/or the risk of inexperienced staff, both of which can prove costly further down the line. Take a look at some of the reasons high staff costs can affect businesses, and how you can keep hold of your staff for longer.
The cost of staff turnover
Staff turnover can be costly to a business for two key reasons:
1. Hiring processes
Taking on employees has become an increasingly complex and time consuming task in recent years. You could, of course, work with a recruiter, but this will only probably replace time and administration costs with actual financial costs.
The recruitment process is often slowed down by having to look through the thousands of CVs that your company might receive, criminal background checks or a slow-moving interview process.
2. Training new team members
When you bring in a new member of the team into your business, they will need training in the way your business runs, and maybe even specific to their role depending on the level of experience they have.
Naturally, this incurs a training cost, through the initial low productivity of a new learner, the time it takes for someone to train them and the cost of learning materials you may need to use.
Welcoming an inexperienced team member may also bring an increased risk of accidents if they are unfamiliar with safety protocols and their working environment.
How to prevent staff turnover
Whilst you can never force someone to keep working for you, making their experience as enjoyable as possible will help to keep team members part of your team for a long time. Here are some of the ways you can improve employee experience:
- Get your recruitment process perfected to attract and appoint the right person for the right job.
- Have a thorough onboarding process that makes your new team member feel welcome and supported.
- Engage with your team regularly to recognise and value them as an important part of the team, where their contributions and opinions make a difference.
- Introduce or develop an existing employee benefits package that your team can experience as part of everyday life. This could include a complimentary fruit bowl, team socials or a deal with a local food shop where they can get discounts.
- Create a meritocratic workplace free of favouritism, where hard work is rewarded
- Provide training opportunities for your team. This doesn’t necessarily need to be an expensive course that requires yearlong studies. There are plenty of online options that may only take a few hours or days.
- Don’t just wait for annual reviews to come around to have a one to one with a member of your team. Having more regular reviews can show that you are helping them with their career and keep them focused.
Did you know?
The average cost for an SME to replace an employee is £12,000
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