The Benefits of Investing in an Employee Retention Strategy
In today’s job market, candidates are being recruited left and right! With plenty of available jobs, recruiters are using their best methods to obtain top talent, including those who are already employed. It has never been more important to have an employee retention strategy in place.
Evaluating why you should retain top talent is the first step in making simple changes to your company’s routine. Retaining top talent can help with overall production, help employees work collectively, and encourage leadership. Retaining top talent has major benefits, especially when it comes to your company’s time and money. According to an article on Forbes, the cost to rehire can be up to 50% of the salary for an entry level position and up to 200% of the salary for a senior level position. In addition to extra money spent, time spent interviewing, training, and seeking additional support from other employees can come with a hefty price tag. Although the costs for the HR department may be minimal, it’s what happens outside of the department that’s costly. When a department has an open position, employees must fill the gap while covering their own responsibilities. With one less position filled, production and activities can slow down and set deadlines back. Placing strain on other employees can cause stress and a chance that they too may become unsatisfied with their current position and choose to leave.
Creating a retention strategy that has a competitive edge on employee benefits could be the key to increasing production. For example, since implementing an open PTO policy that allows their employees to have an unlimited amount of PTO, Indeed has seen an increase in production and growth during 2017 and higher engagement among their employees. Employees are more likely to stay when their employers understand the needs of the employees and the importance of offering more than traditional benefits.
An employee retention strategy can also increase company morale. With a positive work environment, employees are more likely to be happy and comfortable and to stay employed with the company. Facilitating company engagement and team building activities can help your company establish a great sense of morale while bringing your employees closer together as a team. A sense of morale can also increase productivity and encourage employees to surpass expectations in their role.
Lastly, implementing a retention strategy can improve loyalty. Showing support for all departments can express that you’re invested in your team and are willing to make employee satisfaction one of your top priorities. Making employees feel like they are valued and appreciated will encourage them to seek assistance if there is an issue that needs to be addressed before looking outside the company. When each employee is treated with the same amount of support and respect, it makes the environment a positive and productive one!
These are just a few reasons why your company should support and implement a employee retention strategy. Although there are other reasons for leaving a company, knowing that you have fully supported your employees can reduce the chances of others falling into the same pattern and can speak to others entering the company about just how well organization values and respects it’s employees.