It is estimated it can cost a business £30,000 to replace a leaver, when you consider all the costs associated with bringing in a new employee such as: onboarding, training, recruitment fees and productivity loss as the new employee may take months to become as productive as their predecessor. When good people leave it can also affect the morale of the existing team and add the pressure of covering their ex-colleagues workload whilst a replacement is sought.
The good news is that a recent study carried out by Chartered Management Institute (CMI) found that 54% of workers would like to have more control over their working hours, and only a quarter (25%) said they were happy with their current work/life balance.
Here are some of the top factors that help the retention of your most talented employees.
By providing employees with flexible working hours and location options and meeting the needs of their own lives, businesses have the opportunity to give employees the autonomy and control they desire and ensure that they do not feel as if they are working for just one person. The majority of survey respondents (64%) said that flexible working options were very or fairly important in the recruitment process and even more people (69%) agreed that it was important to give employees more control over when and where they worked. Additionally, a quarter (24%) said that the more flexible the working hours, the better.
Offering career progression
Once a job is secured, the next thing employees want to know is where they are going to be based, as well as how long they will be there. Providing career progression for employees that are currently working will encourage them to stay for longer, as well as give them the opportunity to develop their skill set so they can grow in the role. Furthermore, the more senior the role, the more likely it is that employees will want to stay with the company for longer, as well as having the chance to help to shape the company for future success.
Most employees think that a boss should have the ability to motivate and encourage employees to strive to do their best. Those that work with colleagues that enjoy being with each other or have a common interest will be more likely to remain with the company for longer and form bonds that last a lifetime. As well as making their job a more enjoyable experience, employees can also feel happier at work as it does not really matter if they make small mistakes, as it will not affect their overall work. The overall benefits of offering a career development plan for the people working for your company can be seen as they stay with you for longer and develop their skills, giving your business a better understanding of your strengths and weaknesses and improving your potential future work experience and recruitment.
Staff turnover can make or break a business, particularly in the food and drink sector, and an honest pay policy is a recipe for disaster. To start the conversation, why not offer your existing staff their pay review today? Why not make a surprise announcement to your staff or consult with your HR department on your existing pay policy and consider making any adjustments needed. In the case of a special performance bonus, companies can award bonuses based on performance criteria. This can be as simple as finding out which of your staff are the best at what they do, ranking them against each other, and rewarding the person with the most sales per person and the most committed to their job, receiving a bonus.
By rewarding employee’s based on their contribution and productivity, both their morale and productivity can be increased which will have a positive impact on your bottom line and your staff retention rates.
Pay is just one of the many ways businesses can reward staff and retain talent. Consider investing in new equipment to give your employees the tools they need to excel. Consider investing in training courses to develop staff skills and equip them with the knowledge and experience to succeed in your industry.
It may cost a little more, but it will save you thousands in the long run, especially when you consider that the average recruitment cost for a new hire which is some estimates can anything from £4,545.
If you want your business to thrive, don’t just focus on employing the best and the brightest. Focus on working smarter. If you pay fair wages and provide the right benefits and training then those skills and experience can truly shine.
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Before joining the business I worked in property lettings for 5 years. In May 2019 I made the switch to Circle Select as I wanted the chance to work in a high energy office with constant encouragement and positivity.