Today’s bustling economy means that employees are willing to take greater risks than they were just several short years ago, and this often leads to high turnover rates. Unfortunately, the cost of turnover isn’t often immediately noticeable because it isn’t figured into financial reports, which causes them to fly under the radar of the majority of Chief Financial Officers. Nonetheless, estimates put high turnover and employee disengagement among the top five costs associated with doing business.
Following are just a couple of the many ways in which a revolving door of employees might negatively impact a business.
New employees need to gain a certain amount of traction before they reach optimal production levels. If they leave before they’ve reached this point, the cycle begins all over again with the next person in the position, and sales never really reach their full potential.
Inadequate Customer Service
Few things are more likely to cause customers to go elsewhere than poor customer service. New employees may not mean to provide bad service, but because they haven’t yet hit their stride with the job, they may be doing so unintentionally.
Employers can increase employee retention levels using a variety of strategies, but one of the most effective is narrowing down applicants to those who most likely to be a good fit for both the specific job and the company itself.
One of the most common reasons employees decide to seek opportunities elsewhere is because of poor relationships with supervisors. Supervisors need to be able to develop positive working relationships with others by building trust, and they also need to be held personally accountable for meeting employee retention goals in their respective departments.
Supervisors aren’t the only ones who should be accountable in matters of employee retention, however. Top executives need to play a role as well in keeping the cost of turnover down. Instead of leaving employee retention solely in the hands of the HR department, top management should foster an inclusive approach that requires accountability on all levels, and executives can do a lot to cultivate a stable, loyal workforce.
The Stay interview
The Stay Interview is among the most effective tools for optimizing employee retention levels. As its name implies, the Stay Interview is a one-on-one meeting with an employee in which the goal is to determine what makes the employee want to continue working for the company as well as what would cause them to leave. Common reasons given for each scenario provides an excellent foundation for the company’s employee retention strategy.