Employee Retention – Huge Savings In Turnover Costs
Employee retention represents one of the most immediate saving opportunities available to a business or organization.
Conversely, the lack of employee retention steals profit dollars more quietly, consistently and with potentially crippling effects than just about any other drain on profit.
Employee Retention Is A Powerful Profit Retention Strategy
Research shows an employee leaving an organization costs about 40% of the position’s annual salary in terms of recruiting, replacement and training. Studies also identify additional costs of about 3–5 times the amount (of the 40%) in missed opportunities, low morale, lost productivity and negative team impact. This is an unwanted expense for any business. And, for mid-sized and small business, high turnover can cripple growth, reduce profits and even put some businesses in jeopardy. Employee retention is more than a buzzword – it’s a profit retention strategy.
Retention Strategies – Protecting Profits
Quantifying the loss of employees helps you understand the impact on a business. Because the cost of poor employee retention will not appear as a separate line item on financial statements, most businesses are unaware of its true impact. Retention strategies can show ROI if businesses know where to look for costs. Poor employee retention can be a huge drag on the bottom line. Experience has taught us retention strategies do much more than pay for themselves. They stop continual losses from going out the door.
Job Satisfaction – A Huge Step in Employee Retention
Employee job satisfaction is an obvious tool to use in improving employee retention, we are experts at working with our clients to execute a job analysis. When a job analysis is completed, an exacting template of skills is defined and this is used as a guide to help match the right candidates with the right job. A job analysis defines what skills and abilities an individual needs to be successful in specific positions. Job satisfaction is the result of having the right people performing in positions highlighting their skill, knowledge and interest.
The formula is simple – the higher level of job satisfaction there is within a company’s workforce, the better employee retention is and the more profit goes to the bottom line.
Productivity Flourishes When Job Satisfaction Is High
Beyond employee retention, using job analysis to improve job satisfaction creates an incredibly positive byproduct…productivity. Because we are ensuring the people are in the right positions to maximize skills, more is accomplished and productivity soars. Ultimately, increased sales and profits can result from improving employee retention processes
Contact Bartlett Consulting Inc. to assist you in employee retention, job satisfaction and developing effective retention strategies.