The Value of Employee Retention
Let’s face it, as employers, many of us realize that an employee can be swiftly replaced. Especially when we’re hiring for non-technical or non-skilled positions.
What many employers don’t consider is the actual cost of employee turnover.
Not only does the employer have to dedicate time and resources to find a new employee… Once they’re hired, additional resources must be invested for training, not to mention the cost of down-time between productive, trained employees. Unless a certain employee must be removed from the workplace, it is usually best for your bottom-line to focus on employee retention.
These tips might seem like a given, but if you are conscious of them, you could save yourself or your employer a lot of time and money.
First and foremost, view all employees as assets – From the first second you browse at their resume and application, you have begun dedicating time and resources to that individual. As time passes, you will dedicate more time, energy, money, and emotion into developing the employee. As they become self-sufficient, they have created value for your business. Now, think of spending all of the time and resources to bring another employee up-to-speed. Not only are you dedicating resources that you wouldn’t have to if you kept your original employee, now, the new employee is a potential liability. Will they do the job well? Will they show up to work on time? Will they resign and cause you to start the process all over again?
Now that you view each employee as an asset, let’s remember that all humans, no matter how tough still have feelings. One of the simplest things an employer can do is show a little appreciation every once in a while. This doesn’t mean throwing a party every time they sharpen a pencil correctly. All that is really needed is a “Thanks” or “Good Job” from time-to-time.
On the same note, NEVER treat the employee as if they are easily replaceable, even if they are. There is nothing that will make a person feel farther from their employer than being told that they are not appreciated and they are not needed. Even if it doesn’t chase them off, I can almost guarantee that you will receive the least amount of productivity possible out of that employee. They will also likely badmouth you as the employer, and potentially worse. There is also a good chance that they do a lot more than the employer or supervisor realizes. Most of us have probably been an under-appreciated employee at one point in our career as well.
The bottom line is that treating employees in a negative manner in the workplace is destructive, and ultimately effects your bottom line. At the same time, developing a culture of acceptance and positivity in the workplace will increase your employee retention and ultimately make your business more profitable. And that’s why we’re all in business, to make profit! When it comes to profit, nothing is better than gold, so follow the golden rule and you will maximize your employee retention, make more profit, and be more successful at your job.
The Value of Employee Retention
Article by Mike Gamache
Owner, Elite Staffing Solutions
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