Why is employee retention important?
Losing staff, especially in large numbers, is disruptive to a business and very expensive to boot. High employee attrition is expensive to the business because it needs to spend time and money filling the vacant positions and training up new employees. High turnover can also make the remaining employees more stressed out because they have to fill in the gaps until a new employee is hired and trained.
It’s no wonder a recent survey of human resource managers shows that employee turnover remains one of the most critical workplace issues. Sixty percent say that skilled-person power is “scarce”. Forty six percent say that worker retention is a “very serious” issue and another 28 percent believe it to be “serious”. – Switch and Shift blog (now discontinued)
Add to this that, with recruitment and training costs, it can often add up to 30 percent of that position’s annual salary to re-recruit for it. Losing staff in great numbers can often dramatically lower employee morale and cause a wave of people leaving because they see their colleagues doing the same thing.
Harvard Business Review cites a case from MCI, where MCI’s management [wanted to] determine what affected job satisfaction at its service centers. The factors they uncovered, in order of importance, were satisfaction with the job itself, training, pay, advancement fairness, treatment with respect and dignity, teamwork, and the company’s interest in employees’ well-being.
In general, the old adage by Dale Carnegie is still a great one: “People work for money but go the extra mile for recognition, praise and rewards.”