Given the costs involved with recruiting, employee retention needs to be among your biggest priorities. An effective retention plan fosters engagement, creates an authentic company culture, and shows you value what your employees care about most. Here are four reasons employee retention needs to be a top priority in 2020.
Employee Retention Conserves Resources
Retaining employees saves time and money. With the salary spent on HR and other departments involved in the hiring process, as well as the reduced productivity and output a new hire brings to a role, you could spend 6-9 months’ salary each time you replace a salaried employee. Even worse, replacing high-level employees can cost in excess of 150% of their salary. More hours spent advertising openings, reviewing resumes, interviewing candidates, and contacting references means less time for other tasks.
Supported Employees Remain Loyal
When you provide employee support as part of your retention plan, staff remain loyal to your company longer. Team members who feel valued, appreciated, and connected to your organization are less likely to leave when recruiters call or opportunities come up. Supported employees feel trusted, autonomous and engaged. They’re responsible for making a variety of decisions, receive constructive real-time feedback and have their contributions recognized. Staff who have support are well compensated, listened to and offered ongoing professional development opportunities. They’re treated with respect, offered opportunities to advance and given challenges to move their career forward.
Employee Turnover Is Contagious
When one employee leaves, others may feel encouraged to follow suit. This is especially true if a new hire starts work and finds out team members have been around for a short period of time. If the staff doesn’t stay very long, new hires might not feel encouraged to stay either. Because people are social creatures, we talk about almost everything. If there are significant issues affecting your team’s cohesion, teammates will discuss it. As problems increase in size because they’re not dealt with, employees feel encouraged to leave for a better work environment. In contrast, being welcomed to the team by employees who’ve been with the company for years and love working for you provide new hires confidence that they made the right decision in coming to work for the business.
Employees Get Stressed by Turnover
Turnover is stressful on your team. This is especially detrimental when teammates’ friends leave the company. Team members often leave because they miss working with people that they spend time with outside the office. Having significant numbers of employees leave affects collaboration and culture. Teammates feel stressed because of pressure to take on additional responsibilities, resulting in less time to perform their own work. To combat this issue, offer remote work options, additional paid time off, and other methods for reducing stress.
Hire Top Accounting and Finance Employees
Hire top finance and accounting professionals through Casey Accounting & Finance Resources. As a leading Rolling Meadows staffing firm, we fill your direct-hire, temp-to-hire and temporary staffing needs. Contact our leading finance recruiters today.