One common mistake of a company’s human resource department is focusing solely on recruitment. You have to remember that the HR department is also in charge of employee development and employee retention.
If your company has a high employee turnover, you have to take it seriously. It is hurting your business more than you think. To keep your best talents, focus on employee retention activities.
Don’t allow small issues to get out of hand. When things get worse, it is best to get mediation services in employment disputes.
Here’s how a high employee turnover rate affects your business.
You lose business contacts
This is even especially true if you are losing salespeople. You have to understand that your salespeople are bringing a lot of business networks and contacts. Some leads were turned into clients because of the relationships that your people have formed with them. So, if you keep losing employee after employee, it won’t be too long before you start losing your clients.
It is costly
Founder and CEO Chad Halvorson writes in Time magazine that a good employee is like money in the bank. Your best employees contribute to your company’s productivity and effectively. If these people start leaving your company, it will have a tremendous impact on your business income. You will have to spend for recruitment and hiring services. Also, you will have to give time for your new employees for their learning curve, before you give them more responsibilities at work.
It affects overall company culture
When some employees start leaving and jumping ships, it affects the mood of the whole workforce. They may start pondering on whether you are offering better opportunities than other companies out there. They will start finding faults in your policies, leadership, and processes. If this happens, the rate of productivity decreases.
It impacts your brand reputation
If employees cannot stay in your company for more than a year or two, what does it say about your company? You want to be recognized as a brand that takes care of its people, invest in employee development for increased efficiency and creativity, and having the best talents in the industry.
If you want your clients to value your service, you need to value your people as well. Remember that your business’ success relies on your people, first and foremost. For this, you need to empower, encourage, and nurture them.