When a good employee leaves your company, it hurts. There’s nothing worse than that sinking feeling you get when that person enters your office and breaks the news. You’re happy for them, proud of what you’ve helped them to accomplish, but oh, so sorry to see them go … especially if they’re taking all their skills and putting them to work for a competitor.
According to the Society for Human Resource Management (SHRM), the average cost of losing an employee is six to nine months of their annual salary. But the real cost could be up to twice their earnings, especially in upper-level positions.
In addition to recruiting and training expenses, you also need to factor in:
- Lost productivity: It can take a new hire up to one to two years to match the productivity of the person they’ve replaced.
- More errors and threats to customer service: New employees take longer and are often less adept at problem-solving.
The True Bottom Line: Culture and Engagement
Employee loyalty is based on an engaged workforce and a winning company culture. This spills over into customer loyalty – and it’s a known fact that it’s much easier to generate more business from an existing customer than to draw in a new one.
- According to a recent Gallup poll, employee disengagement costs U.S. companies $550 billion a year. Each time an employee interacts with a customer, they’re representing your brand. Even those who rarely or never have face-to-face contact with customers play a key behind-the-scenes role.
Help Your Staff Reach Their Full Potential
Employee engagement isn’t just about employees being happy in their jobs. It’s about them feeling fully invested and sharing the long-term goals, mission, and vision of your organization. Former CEO of Campbell Soup Douglas Conant summed it up when he noted that “I strongly believe that you can’t win in the marketplace unless you win first in the workplace.”
- It’s all about trust. Make sure your employees feel safe and confident in providing feedback and sharing their opinions. After all, they’re on the front line when it comes to making improvements, serving customers, and solving problems. Actively listen to what they have to say.
- Provide training and growth opportunities. When people are equipped with the knowledge they need to perform well, job satisfaction grows. Professional development prepares people for positions of greater responsibility. It helps not only to retain staff but also to attract top talent to your business.
- Reward milestones and achievements. It’s human nature to want to be acknowledged for your successes. Even low or no-cost recognition – like an email to your CEO complimenting a team member or a shout out at a group meeting – can go a long way towards keeping an employee engaged and happy.
Disloyalty comes at a high price. Word travels in real-time – and former employees can take to social media and air their grievances. And, they won’t hesitate to use public forums to share their experiences and impressions. So, it’s well worth your time and energy to focus on your most important investment: your people. Work just as hard to win and retain loyal employees as you do loyal customers.
For more ideas on staff development, engagement and retention, read our related posts or contact PrideStaff Modesto today.