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How Retention Affects Your Bottom Line

Posted by Peter Colley on 24-May-2017 09:53:41

employee retention, bottom line, engagement

Employee retention is a pivotal key to your business’ success. Now, you may be asking, “Why do we need to focus so much effort on employee retention?” When you’ve got to dedicate a lot of your time to keeping the company afloat, why do you need to devote time to making sure people are enjoying their work?

The answer:

Because without the right retention, there is a very strong chance employees will leave their company for pastures new.

People believe in their job because they believe in their company, and more specifically, because they believe in their bosses.

In fact, a survey from CV Library revealed that 13.9% of employees didn’t have a good relationship with their boss, which was a main reason they felt the need to leave. Employers need to be able to see eye-to-eye with their employees, otherwise you could have this colossal problem brewing under your nose without realising it until they’ve made for the exit.

When an employee leaves, it takes it's toll on your bottom line, your customers AND the rest of your workforce..

Now, unfortunately, upon the departure of your employee, unless you’ve got workers growing on trees, you’ve got to start up the recruitment process from scratch, which can be quite taxing on your company. Oxford Economics and Unum estimated that depending on the role, it can cost an employer up to eight months of an annual salary to replace someone. The same research also estimated the average cost of replacing an employee to be £30,614. And that’s for one employee. If you’ve got an entire staff talking about walking out... well, you can only afford to break open so many piggy banks before the recruitment/replacement costs put a serious financial strain on your business.

infographic,employee retention, workvine, employee engagement

Poor retention can have a damaging impact on morale. When a group of people are working alongside each other eight hours a day, they need to build up those relationships and they’re going to have a lot of difficulty doing that if their fellow staff members are coming and going through a constant revolving door. 

The consequences of employee retention always start out small. But if left unattended overtime, the problem can snowball.  Some companies benefit from having a degree of recognisability, and part of that comes from the employees. How can you task people with carrying out important functions to the business if half of that time is spent bringing them up to speed? This can be particularly damaging if you need someone to positively represent the company to other clients. If you’re a newbie suddenly tasked with fully disclosing the in’s and out’s of the service you can offer, it can lead to a deer in the headlights scenario.

It doesn’t necessarily cost much to provide an adequate form of employee retention. But the costs of not retaining employees would be gargantuan.

Still think that employee engagement isn't important? Fact is, this isn't just a fad. Retaining our employees is essential to business growth. 

Workvine puts employee experience at the heart of your business. A positive experience starts with clear, two way communication. Communication which is accessable to every employee, wherever they are. Let us show you the employee app. Our customers love it, we think you will too!

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Topics: retention