Employees quit their job for many reasons. Some reasons, the  employers cannot effect, for example to relocate to away from their home area, to stay home with children, and go back to school are a few. Those reasons are tough to address by an employer because they involve life events in the employee’s world outside of work. 

But, the majority of reasons why employees quit their job are under the control of the employer. In fact, any element of your current workplace, your culture and environment, the employee’s perception of his job and opportunities are all factors that the employer affects. 

The Cost of Losing Staff 

This can be split into two main areas: Psychological & Monetary. Both have far reaching effects that can damage the company in a number of different ways. 

The Psychological Cost of Losing Staff 

  1. Lost engagement... other employees who see high turnover tend to disengage and lose productivity.
  2. Being short staffed resulting in other staff have to cover, increased overtime, etc staff become tired and stressed out.
  3. Cultural impact... Whenever someone leaves others take time to ask "why?" 

The MONETARY Cost of Losing Staff 

A report carried out by Oxford Economics found the average monetary cost of losing staff to be a staggering £30,614 just at the low end of the scale. This was made up by the following: 

  1. The Cost of Lost Output while a replacement employee gets up to speed – anything from 15 to 32 weeks
  2. The Logistical Cost of recruiting and absorbing a new worker Further Costs
  3. Training cost. For example, over 2-3 years a business likely invests 10-20% of an employee's salary or more in training
  4. Customer service and errors, for example new employees take longer completing tasks and are often less adept at solving problems. 

Don’t be a mind reader! 

The best way to retain employees is to stay in touch with what they’re thinking. Are they happy with their work? Are their needs for challenge, belonging, development, and meaningful work met? Do they have the communication, problem solving, feedback, and recognition that they need from their boss? 

If you stay in touch with your employees, you can head off potential retention issues. But, you must think about employee retention every day. 

Are the systems, processes, and requirements in your company supportive of employees? Do they support the most important needs of your employees for meaningful work, market compensation and benefits, and the ability to have an effect on their work and workplace? Most importantly, do they make employees want to stay? 

Ask them! 

Hold stay interviews to determine why employees stay with your organization. Then, pay attention to and enhance the factors they identify that keep them coming back every day. Employees job search for a reason. Find out what it is before the employee announces her departure. 

  1. Use Staff Appraisals to ask staff what direction do they want to go in and listen.
  2. Implement mentor schemes – This provides existing staff the opportunity to feel valued and help to improve new / struggling staff
  3. Invest in staff - Providing external training in new areas of development – Build on staff skills
  4. Environment - Create an environment where new ideas are encouraged, good work is rewarded and people are allowed to stretch themselves to take on new roles and responsibilities.
  5. Conduct regular Salary reviews - Ask your recruitment agency what’s the going rate or run searches on job boards
  6. Pay your staff the going rate – There is a shortage of good staff, don’t lose your for a few thousand when the costs to replace will be much higher than that
  7. Implement Bonus Scheme – An End of year bonus keeps staff loyal for longer
  8. Improve perks / benefits – There are lots of benefits that you can use to keep staff happy. See our “BENEFITS” guide for ideas. 

Remember 

  1. Growth in the market means companies are growing and recruiting
  2. Lack of quality job seekers mean companies are paying more to attract new staff – your staff!
  3. Staff are instantly and constantly aware of new opportunities via job boards job by email & Social media job alerts
  4. The extra cost to improve Salaries, Benefits and staff opportunities are less than the cost of recruiting, training and reaching full productivity
  5. Staff feel safer in the current economic environment and want to progress their careers – let them do this with you! 

Sure, a great opportunity drops into an employee’s lap occasionally. But, this is not the norm. Provide that great opportunity in your company – and know what that great opportunity is – to retain your best employees.

Jose joined New Frontiers in 2000 working a variety of roles from recruitment consultant to in-house recruiter and staff trainer and now General Manager. Jose has a wealth of travel industry experience having worked in travel for 8 years prior to joining New Frontiers with roles in retail and for a tour operator.