Did you know that according to a survey only 54% of employees feel that their company is loyal to them? If you are wondering "why is employee retention important?" we are here to share a few facts every business owner should know.
Keep reading to learn why you want to keep your employees around for as long as possible.
Turnover Is Expensive
The truth is that it costs around 20% of an employee's salary to replace them. This means that if your employees are consistently leaving because of a better job offer, you are spending a lot more money just finding someone to replace them.
When you focus on retention with thoughtful gestures such as employee appreciation day, you will end up with a team that not only knows how to do a great job but also enjoys working there.
Hard to Establish Camaraderie
If you constantly have to bring new employees to replace the ones that left, it will make it hard for your employees to develop bonds and friendships with their co-workers. This will make it harder for everyone to create a strong camaraderie.
With higher employee retention you will be able to build a team that is close and sticks around for a longer period of time.
Customers Notice Name Changes
If a client has been interacting with the same employee and they are suddenly gone, your customer will notice. When they are used to dealing with one person and then they have to deal with someone new it can put a bad taste in their mouth and they might end their business relationship with your organization in the future.
Moving accounts from employee to employee due to them quitting is never a good look for any company because clients will lose confidence when dealing with your company.
Job Seekers Will Take Notice
Not only will your clients notice that employees are leaving your organization but job seekers looking on sites like Glassdoor might stumble on negative reviews from previous employees. Those potential employees looking for a job will more than likely not apply to work for your company if they see multiple people saying they did not work there for long.
Competitors Will Benefit
If there are other companies in your area within the same niche they will benefit from the talent that you lose if they go work for them. When an employee quits they can easily go apply for your competition and you never know if they will be that companies' next top employee.
Now You Know Why Is Employee Retention Important
You now learned why is employee retention important and you can start taking action to make sure that your employees are not leaving as soon as they hear of a better job offer. Keeping employees for a long time is great for your business and will cut down costs when it comes to new hires.
Did our blog post on employee retention help you out today? Please feel free to browse around for some more helpful reads. Visit the HR and Careers sections of the Frugal Finance Blog to learn more about retaining employees.
