Did you know that losing a highly skilled employee can cost your business up to 213 per cent of that staff member's annual salary? Research from the Center for American Progress analysed research spanning 15 years and ultimately concluded that poor employee retention can cause major financial strain for organisations.
That's because long-term employees provide organisations with a range of benefits. Just take a look at a few key advantages:
The longer an employee stays with a company, the better positioned they are to build strong customer relationships.
1. Stronger customer relationships
The longer an employee stays with a company, the better positioned they are to build strong customer relationships. The majority of people value doing business with people they are familiar with, professionals who have a strong understanding of their needs and a track record of meeting them. Keeping your best staff often means happier customers with stronger ties to your business.
2. Greater feelings of ownership
It's hard not to feel invested in a business if you've spent a long time with the organisation. When employees stick with a single company they tend to feel more connected to its successes and failures. This kind of self-investment is extremely valuable to any business, as it means these team members will be putting their best foot forward with every project.
3. Efficient workplace processes
When your team members have a deep understanding of how everything in the company works, they are much more likely to perform at peak efficiency. Having a grasp on what processes are optimal for other departments, how colleagues best work and the ideal ways to deal with longstanding customers make a major difference.
4. Durable office connections
Workplace friendships yield more productive employees, according to research by Gallup. If you have a team of long-standing staff members that truly feel like a team, your business will reap the rewards. These connections facilitate a better understanding of how best to work together as well as a sense of trust and camaraderie.
The state of Australian employee retention
Clearly employee retention is good for business. Yet many companies across Australia struggle to keep employees on board. Research conducted by SEEK, found that 47 per cent of Australians are considering leaving their job this year. On top of this, LinkedIn discovered that 75,000 Australians left their job in 2015 alone with many more considering leaving their current place of employment.
So, what can employers do to retain their best staff members? According to a study by CareerBuilder, 58 per cent of professionals report leaving a role due to a lack of engagement and another 45 per cent left due to a lack of advancement opportunities or professional development options.
Investing in the professional development of your staff shows them that you care about their progression.
Providing your team with relevant and dynamic training opportunities can be a great way re-engage your team members and ultimately retain their talent. Why? Training provides a multi-layered advantage. For starters, investing in the professional development of your staff shows them that you care about their progression.
On top of this, it gives your team members new goals to work towards and exciting new tools to use in the workplace. Ultimately, training is an extremely effective way to engage your staff while putting value on their growth as a professional.
An additional 39 per cent of respondents in the CareerBuilder survey said they left a job due to poor work-life balance. Businesses can boost employee satisfaction (and ultimately improve employee retention) by providing flexible work options, including custom work hours and work from home options.
Employee retention will continue to be a critical focus for businesses across Australia. Leaders need to ensure they are focusing on the core drivers of employee resignations and addressing them appropriately to ensure a long-lasting and successful business.
To learn about training courses for both yourself and your staff, reach out to the team at Barringtons today!