Losing a valued employee can result in a serious blow to your business’s ability to thrive and compete in the marketplace. When that same type of loss affects you multiple times during the year, it can hurt your bottom line and make maintaining company growth a challenge.
Whether you’re a small business owner or solopreneur, being caught shorthanded or working with a relatively inexperienced team means you can’t be firing on all cylinders, and your business takes a hit as a result. Here are a few ways high employee turnover can impact your business and how you can combat it.
Low workplace morale
It can be difficult to motivate employees to share in the vision of your business and perform at optimal levels when their colleagues and work friends leave. This creates insecurity for the remaining workforce, and employees may start to lose their faith in your organization.
Poor performance
When workers leave voluntarily, it disrupts your business’s everyday operations and the performance of existing employees, who may have to take on extra work until replacements are found. This can lead to stress and a decrease in motivation, which can lower productivity and the quality of your products or services.
Increased costs
If you’re experiencing high levels of turnover, financial damage could be significant. On average, it costs about $17,000 to replace an employee that is making median wage in the U.S. Finding new, qualified employees can take a lot of time and resources. The overhead costs of acquiring qualified talent include advertising new positions, paying recruiters, onboarding and training. When you do hire someone new, it will take time for the individual to learn the company’s quality standards and gain experience.
How to combat high turnover
There are steps owners and solopreneurs can take to halt the attrition rate in their workplaces. The following are effective ways you can fight turnover and keep your best talent on board.
-Concentrate on engagement — Employees who feel disengaged with work are more likely to leave their current jobs. Focusing on employee appreciation initiatives, mentoring programs and open communication can help boost engagement and job satisfaction.
-Create more opportunities — Offering benefits that allow for more work/life balance as well as incentives can help attract and retain employees. Consider offering an open PTO policy, work-from-home solutions, flexible schedules, paid paternal leave for new fathers or tuition assistance to increase morale and employee retention.
-Provide better leadership — Ineffective management can cause workers to become frustrated, stressed and clash with their superiors. Investing in development and training for employees in managerial roles can help sharpen their communication and people skills. When managers are personable and qualified to lead, they provide positive work environments, which can lead to a more productive workforce.
Any of these strategies has the potential to improve your employee retention rate and help you stay one step ahead of turnover. For more ways on how turnover can impact your business and what you can do to combat it, see the accompanying infographic.
Courtesy Of Advanced RPO
Resources:
https://drive.google.com/file/d/1SaKCqfUIojJJcSymSPo5_nQ3aV9UsBio/view
https://smallbusiness.chron.com/turnover-rates-effects-organization-10084.html
https://bizfluent.com/list-6660004-benefits-strategic-training-development-.html
https://business.dailypay.com/blog/why-employee-turnover-is-also-bad-for-your-employees
https://www.flexjobs.com/employer-blog/ways-drastically-reduce-employee-turnover
