Some may argue that given the current economic climate, employers don’t need to focus money and resources to actively “retain” staff. Why? Well, unemployment is rising, massive job cuts are taking place and job posts/vacancies are decreasing so employees should be thankful they have a job, full stop!
Employers who agree with the above argument are simply not factoring in turnover costs. I’d bet my right ear that employees will leave if they’re not happy, no matter what the economic climate is like.
So what are the turnover costs? Let’s see:
- Hiring costs — this includes advertising, sifting through resumes, interviewing and selecting a suitable candidate
- Training costs — induction and provide any additional training
- Lost productivity between when an employee leaves and when a new one commences or learns the role
- Cost of additional staff between the employee leaving and the new staff member becoming fully competent
- Extra cost of increased supervision, training and support of the new employee by other staff
While these costs can be quantified, other qualitative factors, like staff morale due to the extra work, are not so easy to measure but are part of the total cost of a high staff turnover.
So how do reward and recognise your employees? Do you have performance awards (staff or management nominated)? The challenge with these programs, especially with awards, is how to ensure all employees and departments are covered — that somehow the quiet achievers are recognised rather it being a popularity contest. But that’s a topic for another day.
