In the past, employees were expected to stay at the same company for a good portion of their adult lives. Nowadays, the idea of working for the same company for 10 years or more seems unfathomable. Since nearly every company used to offer the same benefits packages, even salaries didn’t vary that much, the main goal of landing a good job opportunity was to achieve more stability and security rather than aiming for more money. In this current economic climate, there isn’t much scarcity when it comes to people who are looking for work. This fact has completely changed people’s priorities and goals when it comes to thinking about their perfect dream jobs.
In a recent study, more people cared about the work environment and how they were treated in their companies more than salaries and benefits. Treating the best employees you have as replaceable has cost many companies a lot. Any smart business owner understands the importance of keeping their employees for as long as possible. To see the indirect link between improved employee retention and business growth, here are some benefits to consider.
In any line of business, regardless of how big or small a company is, employee turnover is a completely normal part of how the business runs. However, when this turnover keeps on flooding, the HR team is the first to suffer. Not only does this take a lot of time to process every employee that decides to leave the company, but it also takes chunks of resources and effort to chase prospects, screen applicants, arrange interviews, and do the mental work of weighing between your options until you settle on the perfect candidate. All of these steps can be skipped, and the hassle can be reduced by focusing on employee retention.
It’s one thing for an employee to decide to quit, but it’s a whole different situation when many employees follow in the same footsteps. When employees start seeing their friends and colleagues leaving work they invested years in, they start doubting their own decisions to stay. This creates a poor work environment with a weakened spirit to get any work done or care about the company. By extension, this affects the workforce’s morale. Other than being expensive, low employee retention severely hurts the work environment. If employees are happy with how they are treated, being offered satisfying salaries with attractive benefits plans, and they are valued in the workplace, you can rest assured that your employee retention rate will skyrocket. The road to increasing your numbers starts by looking for more info on how you can offer your employees better benefits plans. This way, you can avoid wasting money on the hiring process and training new employees.
The main goal of any business is to build stable relationships with customers and clients that lead to business growth. After some time, your clients start learning your employees’ names, especially the ones they are always interacting with. When a valuable employee leaves work, clients begin to doubt their working relationship with your company. While it’s totally normal for employees to always look for the next best thing to advance in their careers, this can’t be an everyday occurrence.
When you have a low employee retention rate, job seekers are bound to start a conversation about the negative things happening in your company. Nowadays, there are different platforms for job seekers and previous employees to gather and rate companies based on their salaries, work environments, and more.
According to a recent study, more than 50% of job seekers use sites such as Glassdoor to assess the company they are seeking a position in before they set foot in the door. If your loyal employees are leaving the company, your organization is bound to take a hit on such sites that repel future candidates from even considering going to your interviews.
Having a low employee retention rate means that your managers are always busy training new hires over and over again. This stands in the way of planning for any actual growth. If your managers are busy with new hires, there is no way they will find time for old established employees to start developing which by extension harm your business growth. New hires are always a waste of resources.
These aforementioned reasons and more should be enough for any company to start developing their ways to keep employees around. If your employees are happy, there is a good chance for your business to start thriving and growing. Otherwise, your resources will be devoted to conducting interviews and training new hires instead of securing business development.