Save Money On Recruitment by Investing in Staff Retention
In today's competitive job market, it's more important than ever to focus on employee retention. The average cost of replacing an employee is eye-watering, but retention efforts are often given second priority to the apparent “acceptable” cost of recruitment.
However, the spending on your recruitment budget can be greatly reduced by simple staff retention initiatives.
We all know that it’s not just the cost of recruitment fees that hits the bottom line; it’s the harm of all that intellectual property walking out the door (and most likely straight in through the front door of your competitor), disruption to the rest of the team, the domino effect where a person takes their best people with them, all the training and onboarding for the new staff member, new hires who don’t work out, the ‘getting up to speed’ period where the new hire will definitely be costing money, but understandably not productive for weeks or month, and so on.
So, if this huge upheaval and cost can be avoided through some simple retention plans, then it should be your number one priority!
There are other less apparent, but just as important, reasons why you should consider reallocating recruitment budget to your staff retention activities. Here are just a few:
- Retained employees are more productive. It makes sense, because they are more familiar with the company's output, culture and procedures, and they have a stronger network of relationships with their colleagues, customers and partners.
- Retained employees are more engaged. Engaged employees are much more likely to consistently go above and beyond for their company. They are also more likely to stay with the company for the long term.
- Retained employees have a positive impact on the company's culture. A positive company culture is essential for retaining top talent. When employees feel valued and appreciated, they are more likely to be happy and productive.
There are many things that companies can do to improve staff retention. Here are a few tips:
- Most importantly, invest in employee feedback and engagement programs. These programs will help you hear those who may be feeling disengaged with their role, unhappy with their team leader or a multitude of other factors. By encouraging open and transparent feedback, those issues can be resolved (often very simply), and retention levels will increase.
- Create a positive work environment. This includes providing employees with a safe and comfortable workplace, hybrid/home working if possible as well as opportunities for professional development and growth.
- Offer competitive salaries and benefits. Naturally this will help to retain top talent.
- Recognise and reward employees for their hard work. This shows employees that their contributions are noticed and valued.
By focusing on staff retention, companies can save money, improve productivity, and boost employee engagement. These are all essential factors for long-term success.
If you're looking for ways to improve your company's bottom line and create a more positive work environment, then focusing on staff retention is a great place to start.
Photo by LinkedIn Sales Solutions on Unsplash.