Employee retention: The real cost of losing an employee
From benefits to salary to incentives and culture. What does it take to attract and retain top talent. The secret is in redefining the term “top talent” to align with the culture of your company.
People don’t quit jobs, they quit people.
Joe didn’t quit because he wanted to pursue basket weaving, he just said that because he couldn’t take the uncertainty of working under Andi. It may seem like a cliche but the truth is, people don’t quit jobs, they quit because the management style is not suited to them. The good news is: that management style may be perfect for someone else.
Recruiting and training a new employee requires a lot of time and money. So, getting it right the first time makes sense form a company culture, a money and a time perspective.
What does hiring and firing cost?
Some studies state that employee turnover costs between 6 – 9 months’ salary on average. For a manager making $60,000 a year, that’s $30,000 to $45,000 in recruiting and training expenses.
Is there still employee turnover post-COVID?
With unemployment reaching rates not seen since the GREAT depression (not the 2008 one) some employers may wonder how important attracting the right hires is in the age of 16% unemployment. The answer is, very important. While the numbers would indicate otherwise, the boot son the ground reports are that skilled work is still very hard to find. Retention is as important as attracting the right talent. There is tremendous cost to turnover:
- The cost of hiring a new employee includes recruiter fees, onboarding costs, time to train.
- Lost productivity in the onboarding and in the differential between an experienced person and someone learning the ropes.
- Culture & engagement hits can come from team members who align with the departed employee or do not align with their replacement.
- Client loyalty can be impacted when your clients see a new person in a trusted role. They may question your commitment to them and your internal ability to manage your staff.
Retention of key employees is essential but attracting employees who will stay is the way of the future for companies who are in growth mode. No one has time to go through the hiring process for the same role multiple times. At CultivHIRE we are dedicated to culture assessments that put the right people into the right roles. Reach out to learn more.