Employees are one of the most important aspects of running any kind of business and detrimental to a company’s success. Every company should understand that people are their greatest commodity. Without qualified people who are good at what they do, any company would be in serious trouble. Employees are valuable to our business and a seasoned and experienced employee can unquestionably bring a lot of value and added benefit to the business. I am passionate about the topic of retention because candidates and employees are our lifeblood – our reason for existing.
As the economy revives, companies with dissatisfied employees will experience a swift migration of their top talent if they are not proactive to keep them engaged and happy. Ultimately, hiring individuals who are truly fit to succeed in the position for hire will dramatically increase the chances of that employee being satisfied with his or her work and remaining with the company for an extended period of time. In the long run, the retention of existing employees saves companies thousands of dollars in advertising and recruiting expenses, orientation and training of the new employees, decreased productivity until the new employee is trained, and loss of customers who were loyal to the departing employee. In addition to money, some additional ways the process of employee retention will benefit an organization are:
· Loss of company knowledge: When an employee leaves, he/she takes with valuable knowledge about the company, customers, current processes and past history (sometimes to competitors).
· Turnover leads to more turnovers: When an employee leaves, the effect is often felt throughout the organization with increased workload. The unspoken negativity often intensifies for remaining staff resulting in turnover.
· Goodwill of the company: Higher retention rates motivate potential employees to join the team.
There are endless factors that play into keeping employees satisfied considering every individual has different motivations for working. But, we all work because we obtain something that we need from work. In my 8 years of staffing, I have found the following to be the most common elements to satisfaction in the workplace: competitive wage and benefit packages, communication, including employees in decision making, opportunities for growth and development, recognition of hard work, clearly outlined expectations, fair treatment of all employees, fulfillment and enjoyment in the workplace and balance of work and personal life.
For every company, workforce is an intellectual capital, which is the source of its competitive advantage, and helps achieve the bottom line. In my opinion, instead of trying to eliminate turnover, we need to take control of it. Push out the low performers, but do not let good people get in downward spirals. When an otherwise good employee is struggling, help him or her see what they can improve on to be successful. Help everyone earn more of what they want in order for them to remain satisfied. Remember, though, whatever you are doing to be flexible and generous to retain your good employees, be much more flexible and generous to keep your great employees.