The Number 1 Way to Stop Employee Attrition
I’ve written before about the incredibly high costs of customer attrition. But what about the costs of employee attrition? Isn’t it really the other end of the same stick?
Losing customers and losing good employees are like money running down the drain. And they cost even more to put right.
Sure, there will always be client and employee turnover, but what can you do to minimize those costs and keep your business running at peak efficiency too?
How to Keep your Employees Happy
These are the things often cited to keep your people, and keep them happy:
1. Pay Well
That isn’t to say pay everyone more than they’re worth, just make sure you’re paying the market rate.
2. Appreciate your Employees
Reward good work, regularly and often.
3. Be Flexible
Allow remote working and flexible hours when appropriate, as well as generous leave policies for illness, maternity/paternity leave, and the opportunity to take unpaid leave.
4. Make your Workplace Engaging
Not just free snacks and cool hang out spaces, but gym memberships and other health and wellness initiatives too.
5. Invest in Mentoring and Education
Everyone wants to feel valued and skills development helps your business grow too.
What’s the ROI?
None of these employee initiatives come cheap. But the cost of losing your employees is much, much greater.
Statistics show that replacing a team member with a salary of $50k or less costs as much as $10k.
The cost of losing an employee is estimated at 1.5 to 2x their salary.
Yes, it’s difficult to quantify, although you can take a pretty good shot at it using the formulas in this great article in the Huffpost. Costs associated with hiring, onboarding and initial training, continued learning and development and the costs associated with an unfilled role all need to be factored in.
Training and Development that Adds to the Bottom Line
Here’s a thought– what if your training and development investment did this:
increased sales revenues
helped employees feel valued
helped reduce turnover
Wouldn’t that be a win-win-win?
All educational initiatives that help employees grow have an intrinsicallly positive ROI. But when training has a direct connection to the bottom line, that becomes a positive that cannot be ignored.
Giving your customer facing employees some basic sales skills has a direct impact on your bottom line. These people are in front of your clients and prospective clients every day.
When you teach your client facing team how to spot new business opportunities and how to ask the questions that develop client relationships and bring in new business, everyone wins.
Suddenly you’ve dramatically reduced both customer and employee attrition. Your bottom line, and your CFO, will thank you.