Attracting top talent in the current climate of candidates wanting more and more from employers, not just financially but to improve wellbeing and work-life balance, is harder than ever before.
But now you’ve attracted the best talent, keeping this talent is even harder. Monster reveals that “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 employees which ultimately result in losing money...
The REAL cost to your company
Employee turnover costs a company in many ways; a loss of skills, lowering staff morale, clients, project delays, or even damage to the company's reputation internally, it is not just the monetary loss. It has been reported that it costs an average of over £30,000 to replace a member of the team, this is even higher for Senior Management, this cost reflects aspects such as loss of productivity, cost of finding a replacement, and the training of the new employee 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 it's employees then morale and internal reputation become low and this will ultimately encourage more people to leave.
Understanding how to keep your staff happy is crucial to your organisation.
It’s important to know your employees, 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 reasons why people leave, there is a saying that “people don’t leave their jobs, they leave their 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 people can 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 its team.
Respect and loyalty are earned by a manager just as they are an employee, mutual respect and loyalty will increase productivity and decrease employee turnover.
The classic: Overwork and Underappreciated
Being overworked and underappreciated means employees are unproductive, and unhappy and this will ultimately lead to them 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 working culture of employees having to work all hours, including annual leave and public holidays can create a pressurised and not always productive environment and culture. Allowing employees to feel able to leave when they need to, without pressure to stay as late as the person next to them, will give employees a better sense of the culture. We have found from our recent Salary Guide that most employees value flexi-time as a desired benefit from a company, your organisation could look to implement this where possible.
Grow, Grow, Grow
Employees look for growth and progression opportunities, they want to climb the career ladder faster than anyone else. Make sure your employees are inspired and receive 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.
Employees are an Investment
Ultimately your team is an investment and can impact your company’s success, so hire good managers, don’t overwork or overload employees, and allow professional growth. Take care of your employees and watch your company succeed before your eyes.