Real cost of losing an employee & 5 ways to make them stay
When an employee leaves, it also leaves a negative impact in the organization.
Losing employees leads to decreased productivity, simply because you have less people to get the work done.
Employees resigning leave a lot of work, and this falls on to the remaining employees taking on more responsibility while you search for their colleague’s replacement. This results in employees being overwhelmed and performing lower than their best.
As you need to hire new people, it will take time and high cost of hiring and training new employees.
An employee leaving also means lost expertise and knowledge.
Real cost of losing an employee:
Lost productivity: Remaining employees taking on the left job responsibilities gets overwhelmed, thus resulting to a low productivity at work.
Cost of hiring a new person: Financial cost and time spent in finding new employees such as advertising, interviewing and hiring
Cost of onboarding a new person: Financial cost and time spent in training and onboarding new employee
Decrease in employees morale: Remaining employees who sees their colleagues leaving tend to disengage and be unmotivated
Knowledge and expertise loss: Comes with employee leaving is the knowledge and expertise one has to the certain job
5 Employee Retention Strategies Must Have
- Hire the right people.
Hire right in the first place and hire strategically. Clearly explain your expectations in the position. Looking for someone who has the right skills coupled with a personality that fits your company culture is critically important.
- Offer Work-life Balance & flexibility in work condition
Strict work rules drive good workers away, especially with the young generation of workers.
Millennials put importance to having a successful and fulfilling life at work, at home, and with family and friends. The younger workers seek flexibility in their roles that allows them to thrive outside of work. When employers make the right investments in creating a work-life balance environment, both parties experience benefits related to retention and productivity.
- Drive employee growth and prioritize recognition
One of the best ways to prevent employees from leaving is to provide them with opportunities for growth and development. Being vocal about available opportunities to your employees will definitely help.
Giving recognition makes your employees feel valued. When they feel valued, they feel competent and respected, making them thrive better and less likely to explore their options elsewhere. Along with recognition, awarding them with right compensation is a critical factor in employee retention.
- Teamwork and company culture
You should encourage your employees to contribute to ideas and solutions. By making them feel heard, it gives them a sense of importance and belongingness to the organization.
- Track and benchmark retention rate
If you don’t measure it, it won’t improve.
Sure, employee turnover is inevitable. Fortunately, you can gain valuable insights by interviewing your employees who are leaving. You can ask why they decided to leave and ask for suggestions to improve the employee experience in your organization.
From hiring to training to retaining employees is not an easy task. That’s why lots of organizations turn to outsourcing companies to find great talents for them and do the work.
At InsBOSS, we are committed to provide freedom of time, energy and money to Insurance Agency owners.
We provide trained Insurance Virtual Assistants backed by a well-versed Support Team to do your insurance back-office tasks, so you don’t have to worry about training your new-hire employees and tracking their productivity.
We got it covered for you!