Attracting staff in the current climate of Gen X and Millennials who want more and more from employers, not just financially but to improve wellbeing and work-life balance, is harder than it’s ever been. But now you’ve attracted the best talent, keeping this talent is even harder. Monster reveals “the UK average employee turnover rate is approximately 15% a year, although this varies drastically between industries. Industries with traditionally low turnover rates include legal, accountancy, education and the public sector.”
We explore why companies are losing staff and ultimately money, as it was reported that replacing staff who leave costs a business on average over £30,000 per loss.
The REAL cost to your company
Staff turnover costs a company in many ways. Lost skills, lowering staff morale, clients, project delays, even damage to the reputation of the company internally not just the monetary loss. It was reported that it costs an average of over £30,000 to replace a lost member of staff, even higher for Senior Management, this cost reflects aspects such as loss of productivity, cost of finding a replacement, training of new staff costs. If you are a small business with a high turnover, these costs can become seriously important.
But even though this cost is high, the other factors shouldn’t be overlooked. Company culture is one of the most important parts of a workplace, if a company is constantly losing staff then morale and internal reputation become low and this will ultimately encourage more staff to leave.
Understanding how to keep your staff happy is crucial to your organisation.
It’s important to know your staff, what they think of the business and how it’s managed. Implementing an anonymous feedback box in the office or an open forum between managers and employees can help you understand this.
This can be one of the biggest reason why staff leave, there’s a saying “people don’t leave jobs, they leave managers” and for the most part, this is true. As the ambassador of the company to an employee, Managers provide the employee with a first-hand taste of the company and if this is poorly communicated staff become unhappy. Luckily, this can be easily rectified.
As a Manager you should listen to employees, treat them with respect, fight their corners where appropriate and show appreciation where it’s deserved. A good manager will not only listen, but action any items where possible to fix situations where they arise, they will teach employees, help them grow and understand that a business is only as good as it’s staff.
Respect and loyalty is earned by a Manager just as it is an employee, mutual respect and loyalty will increase productivity and decrease staff turnover.
The classic: Overwork and Underappreciated
Being overworked and underappreciated means employees are unproductive, unhappy and this will ultimately lead them to looking elsewhere. Studies show a sharp decline in productivity when more than 50 hours a week is exceeded, so those employees practically living in the office doesn’t mean you are getting more from them than the person leaving at 5pm.
Forcing a culture of working all hours, annual leave and public holidays creates a pressurised and not always productive culture. Allowing employees to feel able to leave without pressure to stay as late as the person next to them will give employees a better sense of the culture, we found from our Salary Guide 2017/18 that most employees value Flexi-time as a desired benefit from a company, your organisation should look to implement this where possible.
Grow, Grow, Grow
Millennials are looking for growth and progression opportunities, they want to climb the career ladder faster than anyone else. Making sure your employees are inspired and receive the relevant opportunities. Creating a good, regular dialogue between Managers and employees allows your business to understand what’s important to each individual and what skills they would like to develop.
Staff are an Investment
Ultimately your staff are an investment into your company’s success, so hire good managers, don’t overwork or overload employees and allow professional growth. Take care of your staff and watch your investments grow before your eyes.