Employee retention is vital to the success of any business. When talented employees leave, it disrupts operations and hurts productivity—seriously affecting the bottom line. That’s why proactive retention strategies are key to nurturing an engaged, thriving workforce.

The costs associated with turnover and recruitment are good reasons to invest in employee retention. Replacing talent is expensive when you account for lost productivity and the price of hiring and training new employees. On average, employee turnover can cost Canadian businesses between $41,000 and $100,000 annually.

In this article you’ll find five proactive strategies that will help strengthen employee engagement and create an environment where top talent will want to grow with your business.

What is employee retention?

Employee retention refers to how well a company can hold on to its employees, keeping them happy in their current positions. To retain employees means to keep them working within the company. These retention rates are measured for a given period.

A high employee retention rate means your business is doing something right, as it has kept the same employees over time. A low retention rate means a company cannot entice their workers to stay, and therefore much of the workforce has left their positions over time, causing the business to hire replacements.

Why is employee retention important?

Businesses need to focus on employee retention rates as it greatly affects the company in numerous ways. Companies can spend thousands of dollars during the hiring and onboarding process. If businesses have a high turnover, that means they are spending a ridiculous amount of money acquiring and training employees throughout a given period. By improving retention, you lower your hiring costs as you won’t need to fill these positions as often.

On top of the high cost of low retention rates, these numbers can turn potential employees off from applying to your business. If many employees leave a company, then there must be something wrong with the place of employment. People don’t just leave a job for no reason. If numerous people have left a company in a short time, it could mean poor management and work culture overall.

On the other hand, if potential candidates see that a business’ current employees have been there for many years, it shows high employee morale and attracts quality talent to your company. Overall, employee retention is a vital metric to look at as it affects a company’s financial standing and its reputation and ability to hire and retain top talent.

Pour lire la suite de l’article, cliquez ici.

Source: Quickbooks Blog, Dahna M Chandler, Septembre 23, 2023.