Some businesses treat employees like cogs in a machine: lose a few and there are always plenty more to replace them with.
But every person you employ means an investment of time and money. You’ve got to find them, bring them on board, and get them up to speed as quickly as possible.
After all this effort, it makes no sense to treat them as expendable. Instead, it’s far better to take a strategic approach to keeping good people with the company.
If you create a work environment where employees are valued and nurtured, and their job and career expectations are met, your business will be more productive, profitable, and sustainable in the long-term.
Here are some key reasons why effective employee retention strategies are so important:
- Improve the bottom line – Regularly losing good staff is financial kryptonite (replacing someone can cost the business anywhere up to 150% of their salary), so when you find someone special, you should do all in your powers to keep them.
- Sustain productivity – Keeping talented employees happy and motivated in their roles helps ensure the business maintains high levels of performance and productivity.
- Reduce turnover – Aside from the fiscal cost, no company can perform well if they are regularly turning people over, especially the star performers.
- Boost morale and loyalty – Creating a positive work environment and demonstrating you care about your people’s ongoing success strengthens commitment, improves employee relations, and increases company morale.
- Strengthen recruitment – Effective employee retention strategies make your company a desirable place to work, which helps attract quality people when you need them.