Losing and replacing employees is a costly hardship on companies. Though it’s impossible to completely avoid, there are several ways to lessen your business’s turnover rate. The most effective way to promote retention and extend tenure of valuable employees is through dynamic employee engagement. Active engagement improves retention rates and helps lessen costly turnover. Providing your employees with a platform to easily engage in multiple aspects of your company, such as Continuwell, will help them to feel a stronger connection to your company. However, before you can adequately reduce employee turnover, you must first understand its true cost and cause.
To grasp how turnover is affecting your company, calculate how much it actually costs your organization. There may be a direct lack of production and efficiency when a position is left vacant. There are costs associated with recruitment, hiring, onboarding, and training. Also, evaluate the time spent until the new employee’s productivity is in line with his or her predecessor’s. The Center for American Progress examined thirty case studies on employee turnover and found that the cost of replacing employees generally falls between 10%-30% of the employee’s annual salary; though for highly-skilled or C-level executives, the cost can reach above 200% of the annual salary.
In addition to the monetary cost, companies must consider qualitative costs as well. High turnover will cast an unfavorable light on your reputation as industry peers, clients, and potential hires learn that your company has trouble retaining employees. New employees are not as productive and are more likely to make mistakes, which can decrease the quality of the product or service that you are providing. Changing company contacts—particularly if your quality is suffering– creates distrust with customers and may result in a loss of business. These factors contribute to variable, tangible, and negative effects on your bottom line. Furthermore, frequent turnover can impact company culture and create a stressful environment for your current employees. Having an essential role unoccupied generates discord and resentment, which can spread through your workforce.
Aside from layoffs and seasonal employment, most employees leave due to general unhappiness related to compensation, scheduling, or job expectations. Employees may be dissatisfied with the working environment, policies, or company culture. Employees may also feel unengaged with the company, which also makes it less likely that they will voice their concerns or stay loyal to the company. Communication early in the recruitment stages is critical. Be upfront about the requirements and responsibilities of the position and foster a culture that creates productive, valued, and engaged employees.
Engage and retain your workforce by:
- Opening communication. Keep employees informed and maintain a channel for feedback. Employees want to feel like they have a voice.
- Providing a meaning. Show employees how their work is directly helping customers or impacting others. Employees now more than ever want to feel proud of the work they’re doing.
- Making it easier. Put necessary tools at their fingertips with electronic access to documents, systems, and programs. The easier it is for employees to access company resources, the more valuable they will feel and the higher their loyalty.
- Creating a work-life balance. Be flexible with scheduling and make their jobs mobile when it’s feasible.
- Investing. Offer competitive pay and provide an expansive benefits program that meets their needs. Learn their personal and professional goals and accommodate them by providing opportunities for advancement and education.
Employees are an organization’s most valuable asset. Your company may offer a vast amount of resources to your employees, but if they cannot access them your employees will not see them as a reason to stay. Show your employees that you have invested in and appreciate them by empowering your employees with easy access to your company resources.
Continuwell’s mobile health solution offers many customizable features and beneficial tools to keep your employees motivated and happy. Contact Continuwell today or sign up for a demo to learn more about our tools to engage employees and consolidate company resources.