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

 


Business insurance with Premierline

With Premierline, it’s simple to compare business insurance quotes online if you know your insurance requirements. However, if your needs are more complex or you need advice on the insurance covers that are right for your business, call us and we’ll be happy to help.

Compare business insurance

Compare quotes online:

Get quotes now

Or for expert advice call:

  

Request a call back


More from our Insight Hub

Introducing Hybrid Working to Your Business

Business Guidance

Introducing Hybrid Working to Your Business

06 April 2021
Using Instagram to Grow Your Business

Business Guidance

Using Instagram to Grow Your Business

17 March 2021

Protect your business against the unexpected

We specialise in sourcing the right business insurance solutions for businesses and understand that every business requires different cover to protect against the unique risks it faces. Compare quotes online or for insurance advice, speak to our knowledgeable insurance specialists today. Call:   .

Compare quotes online


The information and tools contained in this guide are of a general informational nature and should not be relied upon as being suitable for any specific set of circumstances. We have used reasonable endeavours to ensure the accuracy and completeness of the contents but the information and tools do not constitute professional advice and must not be relied upon as such. To the extent permitted by law, we do not accept responsibility for any loss which may arise from reliance on the information or tools in our Insight Hub.