The costs may be hidden, but they are still there. That alone should motivate you to treat your staff well.
How Much Employee Turnover Really Costs You is an article by Suzanne Lucas which points out the areas of an organization that are affected by employee turnover.
Companies lose 25% of all new employees within a year, says the Allied Workforce Mobility Survey. Retaining employees is important for a plethora of reasons, but do you know how it affects your bottom line? The average cost of turnover has been determined to be 150% of the employee’s annual salary. However, employee turnover takes on far more than just a monetary hit. You also need to search, find, onboard, and train the replacement… which incurs additional cost and loss in productivity.
So, how can you prevent employees from leaving your company?
You need to make sure your employees are happy by keeping the lines of communication open. Meet with them to get their opinion, ask how they’re doing, and see if they have any feedback for their manager, department, or the company as a whole. A transparent environment such as this begins from day one, through an onboarding process that will get people excited about their new opportunity.
By making sure that the lines of communication are always open, company morale will be high. When people feel comfortable and appreciated – like their opinions really do matter – you will be nurturing an amazing work environment; one that nobody will want to leave.
Suzanne Lucas spent 10 years in corporate human resources, where she hired, fired, managed the numbers, and double-checked with the lawyers.