Every company experiences attrition to some degree, and this is perfectly normal. However, if your staffing roster changes constantly, consider this a problem.
The average overall turnover rate is 18%, according to 2016 research from the Society for Human Resource Management. If your company has a higher level, it’s time to take action.
4 Reasons to Make Employee Retention a Priority
Turnover is Expensive
More than just an inconvenience, losing staffers impacts your bottom line. The average cost-per-hire is $4,425, according to 2016 research from the SHRM, but it can be much more expensive for high-level employees.
There’s also plenty of indirect costs associated with turnover, including the knowledge departing employees take with them. Losing even one key worker can be a major hit to the team, but if this happens on a regular basis, it can be hard to keep moving forward.
Tenured Employees Require Less Attention
Proper onboarding is essential to new hire success, but if you’re constantly in training mode, there’s not much time for anything else. Consequently, your other responsibilities will suffer if you’re spending the bulk of your workday helping new employees learn the ropes.
When you’re spread too thin, something has to give, but business will take a hit. You have a lot of important tasks on your plate, so you need time to focus on them.
Customers Want Consistency
It’s not a good look to have a constantly evolving talent roster. Customers notice when they’re always working with different representatives from your company, and they don’t like it. People enjoy handling their account through a dedicated person. When this changes often, they have to keep starting over with someone new, which can be very frustrating. Don’t be surprised if this inconvenience causes you to lose customers, because clients crave stability.
Low Retention Rates Can Make Job Seekers Think Twice
The Internet era has made it much easier for prospective job seekers to research your company before applying — i.e., sites like Glassdoor and Indeed. Retention rates speak volumes about your organization, because people don’t quit great places to work in droves.
If your company has poor reviews and subsequently low retention rates, top talent will steer clear of it. This will make it increasingly harder to fill the positions constantly opening up on your team with quality workers.
Maintaining a low retention rate requires a great deal of time and energy, so allow ECS to lend a helping hand. We simplify the process of hiring and managing a contingent workforce through our employer-of-record system and for your internally sourced talent, we offer professional payroll services and independent contractor management services. Contact us today to learn how we provide assistance to companies of all sizes!
