Did you know that it costs much more to hire a new employee than to keep your current employees happy? You may be concerned about giving raises or providing additional benefits, but the truth is that you can’t afford not to. If you don’t make an effort to keep your top talent engaged, you will find yourself in a position to rehire for the same positions time and time again. Let’s take a closer look at how much more money you spend dealing with employee turnover than keeping them happy.
Loss of production.
Before your top talent even quits their job, they are likely to begin to burn out. They may be less productive and attentive to the job. They may miss more time from the office. All of these are key indicators that there is a problem. Before it reaches a resignation status, there are ways you can focus on retention to keep them happy and engaged. These methods will be far less expensive than hiring a new employee.
The cost of hiring.
When your employee does quit, your cost burden isn’t limited to the replacement’s salary. There are so many costs of hiring that it is far less expensive to keep an employee happy on the job, even with added benefits. The costs rack up as you pay to post the job, perform background checks, and put together the salary for the new team member. Not to mention: You will lose time from your regular job and the work your former employee was doing will go unfinished while you search.
Adding salaries.
The salary can also be a challenge, of course. A new salary in your company isn’t just the money you once payed your former employee. You must calculate taxes and benefits for a new team member which may be different. You may also need to pay someone more if their skills are in high demand. It may be less expensive to give an unhappy employee a raise than hire someone new.
The impact on your team.
Finally, losing a star employee will not only affect your budget, but it will also affect the morale and productivity of the rest of your team. One resignation can cause a domino effect if nothing is changed. When an employee does leave, you owe it to the rest of your staff to work with them to ensure that they are happy and engaged on the job.
Are you investing in your current employees? Harvard Resources Solutions Staffing Agencies in Troy MI can help so call now!
