While you might occasionally welcome the opportunity to hire new talent and \u2018fresh blood\u2019 into your firm, one of your top priorities should always be employee retention. Think about this \u2013 according to CIPD research conducted in 2014, employee turnover cost British businesses more than 13 billions pounds in that year alone. Can you afford to contribute to this pot of lost and wasted money? Most of us cannot.<\/p>\n
Ok, so it is clear than 13 billion<\/strong> is a huge and abstract number, so let\u2019s break this down to a simpler number. How can this affect you and your business? More importantly, how will it affect your bottom line? Oxford University Economics released a report in 2014<\/a> that shows that the average cost of replacing one employee is more than \u00a330,000. More than \u00a325,000 of that? Lost productivity while you are trying to hire, interview and train a new employee. The average time that it takes your new employee, no matter how keen they are, to reach their peak productivity levels is more than 28 weeks.<\/p>\n Can you afford to lose more than \u00a330,000?<\/strong> What if you lose more than one employee in the financial year. What if you lose more than 3, or even more? Would your business survive?<\/p>\n For this reason, you need to cultivate a sense of workplace satisfaction, employee engagement and a positive work environment. Assessing your employees\u2019 intention to stay with your firm is one of the most important things that you can do. When you know more about your company\u2019s employee turnover rates, you can begin to understand them and ideally manage and affect them.<\/p>\n Your organisation might have a really lean and cost effective approach to recruitment, interviewing and training. You might look at the \u00a330,000 figure cited above and laugh, thinking that it only costs you a mere fraction of that bloated number. So, employee turnover isn\u2019t an issue for you\u2026 or is it?<\/p>\n It is absolutely an issue for any business. There are many other negative consequences to having a high turnover rate.<\/p>\n One factor affects your employees intention to stay more than any other \u2013 satisfaction with their jobs and workplace. This is a complex factor. It includes hundreds of different components, things that we have written about extensively in our other blog posts. A positive work environment, support in their position, valuable feedback and a strong rewards system all contribute to an employee\u2019s overall happiness.<\/p>\n That said, different employees all have different drivers behind what compels them to stay with your organisation \u2013 and what drives them to leave.<\/p>\n A millennial might have a very different motivation than an individual approaching retirement. The millennial likely values<\/a> change, complex tasks and constant challenges. They also tend to like an open and friendly workplace that includes team building days and social events.<\/p>\n Members of the so-called Generation Y tend to cite career opportunities and job fulfilment as some of the most crucial components of job satisfaction.<\/p>\n When it comes to the old timer approaching their retirement years? They want strong stability and a sense of reliability. Both are valuable, and both will contribute to the success of your firm \u2013 you need to assess how you can engage both.<\/p>\nThe high costs of employee turnover for any firm<\/strong><\/h3>\n
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Understanding your employees\u2019 intentions to stay or go<\/strong><\/h3>\n