The cost of employee turnover is much higher than you think. The costs for advertising, interviewing, recruiting, training, loss of intellectual property, reduced productivity, poor customer service and lower employee morale mount up quickly. According to a recent Huffington Post article, the true cost of employee turnover can be more than 200 percent of their annual salary.
SCORE spoke with Paul Bellows, a business consultant and CEO of Be Good at Doing Good, to get some advice on reducing employee turnover. Here are a few things we learned from that conversation.
Employee retention starts with an atmosphere and culture conducive to retention. Create an environment where the employeeβs personal and professional goals are discussed and aligned with the operational goals of the organization. Do everything you can to promote the health of your employees on a financial, emotional and physical level.
Invest some time to get to know each of your employees and understand what motivates them. Is it the income, benefits, paid time off, public recognition, additional training, upward mobility or flexible work schedules that are their primary motives? Once you know what motivates each employee, give it to them. Make sure your employees feel appreciated and valued by the organization.
Some employers are getting very creative with ideas to create a culture for employee retention. A few of Paulβs clients allow employees to bring their pets with them to work. Some are focusing on creating a healthier life through gym memberships and healthy food choices from the vending machines. Other employers pay their employees to volunteer time and help various non-profits in the community.
Take some steps today to create a culture conducive to employee retention. It will save you a lot of money in the long run. If you need help, visit Paulβs website at PaulCBellows.com .
