It’s no secret that high performing businesses with long-term success have loyal employees that make up a team of championing superstars. Employees who have gained experience within the company are key players in many crucial decisions and see a long-term future within the organization valuable, compared to fair-weather employees who are cycled through the business quickly.
We all know the pains when a high-performing employee decides to leave. A hole is created, leaving added stress on your team, with increased workloads and decreasing productivity. It’s essential to make a new hire quickly and efficiently, with an emphasis on the right hire. Sometimes the shoes can be hard to fill and spending a little extra time in the recruiting phase can save you a lot of time and money in the long run.
Employee turnover can happen for several reasons, so it’s important to consult the leaving team member and see where they felt pain points and why they are choosing to leave. Often, the answers to these questions are out of your hands, but if it’s due to poor onboarding, a lack of professional development, a glass ceiling, not feeling compensated, or a lack of feedback, this is a sure-fire sign that you could be doing better.
According to a paper published by the Centre for American Progress, “high quit rates are often due to workplace policies that fail to address fair benefits, wages, and conflict. The costs of employee turnover demonstrate that it costs businesses about one-fifth of a worker’s salary to replace the worker.”
To support this, Josh Bersin of Bersin by Deloitte says that the total cost of losing an employee can range from tens of thousands of dollars to 1.5 to 2 times their annual salary.
For this reason, you must think critically and strategically about how well your company’s employee retention program is working and how happy your employees are in their current roles. Ask yourself how you can better serve your employees and empower them to succeed in their role and produce work that will drive your company to the next level.
Here are 5 of the hidden costs of employee turnover:
1. The Knowledge Gap
Having your employees figure out the ins and outs of a position that has been left vacant will take them additional time and effort while putting pressure on their current roles. When a new hire is made, bringing the new member up to speed will also take time. Trying to fill a knowledge gap is evidentially detrimental to everyone involved.
2. Productivity Plummets
High turnover leaves remaining employees less engaged and less productive in their roles. According to Josh Bersin, a new employee may take 1 to 2 years to reach the productivity of the person they replaced.
3. There Is Added Pressure On Top Performers
Your most valued employees are top performers for a reason, so when there is a bit of slack to be picked up, the team will look to them to take it on and smooth things over. This can only be successful for so long. If you burn out your top performers, your company will begin to get exhausted, and the results will start to show.
4. Customer Service Suffers and Errors Increase
New employees are bound to make mistakes, and so are current employees filling in when the position is vacant. These mistakes can be costly and add up over time.
5. Cultural Impact
When someone leaves, it changes the entire dynamic of the team. Usually, the remaining employees would like to know why the employee left to begin with.
What is the solution?
We recommend doing everything you can to hire the right person the first time.
Here at BullsEye Recruitment, we are trained recruiting specialists. We can work with you and your team to create an effective hiring and onboarding strategy that delivers tangible results and sets you up for success in the hiring process. We will help you find viable candidates that are interested in investing in your company long-term.
Contact us today to get started!
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