Turnover is expensive and costs organizations insurmountable amounts of money each year. And not only is it resulting in a loss of money, but it is leading to productivity issues, poor morale and a revolving door of expertise and knowledge within organizations. The question everyone is asking is, why is the happening?
The answer varies per organization, there is a universal question we can all ask. What if we changed our perspective? Rather than wasting money due to turnover costs (think re-recruitment, retraining, re-onboarding, etc), we should focus on proactive prevention of those costs through investment in retention.
So why does this matter to your organization? Here are a few key actions that we see when employers invest in retention:
- Money is saved! (think training, recruitment, on-boarding, etc.)
- Morale is boosted and employees are more engaged
- Absenteeism goes down
- Production improves (because engaged people do better work!)
- Communication gaps minimize as teams work together better
- Retention of employees becomes the norm (Adios turnover problems!)
- Customer / client satisfaction goes through the roof
- Overall culture is enhanced, and referrals of other good employees increase
- Profits soar
In summary, we should stop putting band-aids on the problem of high turnover as it is only a temporary fix. The rewards of employee retention investing are too great to be ignored. For many of you, it may be time to re-strategize and rethink your efforts. It could allow you to bring your organization to the next level of success with retention. You may be spending a bit more money during transitional periods, but in the long run it will pay off. Because, smart investments lead to better results and more satisfied employees.