It costs less for companies to retain employees than to replace them. That’s because the cost to replace employees is really quite staggering. Research indicates that, on average, the cost to replace an employee can be:
- Between 30%–50% of annual salary for entry-level positions.
- More than 150% of annual salary for mid-level positions.
- At least 400% of annual salary for high-level or senior management positions.
These percentages may seem unrealistic, until you consider everything that employers must address when an employee leaves.
What’s included in the actual cost losing talented employees?
Staff turnover can be difficult to calculate, because some of the costs are direct and some are hidden. These include:
- Decreased productivity and morale. Until you replace an employee that has left, his or her tasks are not being completed. In addition, your remaining employees must pick up the slack until you find a suitable replacement. That can be very draining—to both productivity and morale, not to mention your company’s revenue.
- Lost knowledge. No doubt, if the employee who has left was a superstar, he or she had an extensive knowledge of your business, your customers, etc. It’s difficult—if not impossible—to re-train for experience. This is something that must be earned.
- Hiring and training costs. To find new staff, you’ll need to advertise the open position, interview, screen, hire and train replacements. This takes both time and money.
So, what can you do to prevent your company for losing valuable talent?
Tips for retaining top employees
It’s true that for employees who are not top performers, letting them go may be the best choice. But what can you do to help prevent your key players from moving on? Consider the following:
- Conduct employee surveys. It’s important to do this on a regular basis. Take the temperature of your organization, and if you uncover problems, take swift action to fix them.
- Give regular reviews and feedback. A strong, supportive management style is important for employee retention. Let employees know what they’re doing well, as well as what they can improve on and how.
- Offer rich benefits and perks. A great place to work takes good care of its staff. Offer comprehensive healthcare benefits, 401(k), paid time off, flexible scheduling, company picnics and events, dress down days, etc.
- Keep an open door policy. Let your staff know that their feedback matters.
A staffing provider can help you find top talent
Another great way to avoid losing talented employees is by finding workers perfectly matched with your company and its culture. Snelling Georgia Group can help. Our experienced Atlanta recruiters place highly qualified candidates with open positions that match their skills, experience and career goals. To learn more about how we’ll work with you to supplement your staff, contact Snelling Georgia Group today.
