No manager enjoys losing an employee, but if turnover starts to become a problem, it can seriously hurt your bottom line. Generally speaking, it is more cost-effective for companies to create strategic plans to retain their employees. That fact set aside, there are a handful of other ways employee retention impacts your bottom line.
Decreases Employee Morale
High turnover rates hurt the morale of everyone on the team. Usually, when one employee leaves, everyone else is left picking up the slack until a replacement is found. Employees often have to also take responsibility for training newcomers too. Continuously having new people coming in makes it difficult to build relationships in the workplace. Over time, this will make them less engaged, and they’ll lose motivation. Not to mention, it may make some of your other staff members wonder about what other opportunities are out there.
Lowers Productivity Rates
Productivity will take a hit when retention rates are low too. Some of this is due to employees looking for other work. If their coworkers are constantly leaving, other employees will start to search for a new jobs themselves. This will lead to them being disengaged and less productive.
Increases Cost Related to Hiring
The most obvious impact on your bottom line is the increased costs related to hiring. You may have to implement a more expensive hiring strategy. Companies have to spend money on digital advertising to attract attention, and they will also have to account for the time spent during the entire process. Hiring managers will also have to take time away from key tasks to recruit and hire new employees.
Creates a Negative Employee Experience
When coworkers are leaving constantly, and new employees are being introduced, it creates a negative experience for your staff. Again, your employees won’t be able to establish relationships with their coworkers. They’ll be picking up the slack for people when a position is being filled. Oftentimes, they even feel burnt out. All of this further hurts your productivity.
Hurts Your Reputation as an Employer
As an employer, retention rates have a direct impact on your reputation too. Employees and potential candidates talk to each other. Networking contacts within your industry will talk about your company’s inability to retain its employees. More importantly, they will talk about why. Usually, there are things you can improve in the onboarding process or within your company’s workflow that can help improve retention rates and even increase interest in your organization.
Improve Retention Rates by Working With Us
Working with the Staffing Resource Group can help your company improve its retention rates. Our recruiters take the time to get to know your business, its goals, and work culture. Then we find candidates who are truly a good fit for your organization as a whole. We refer employees to you based on our knowledge of the industry and what we’ve learned about your company. Our services don’t end there either. We can help with onboarding, training, and payroll services too. Contact us to learn more about how we can help your business.