Over the past few years, I am sure we have all become accustomed to driving around and seeing HELP WANTED signs everywhere.
Offers of fabulous pay, gracious benefits, and an overall “great place to work” are highlighted. But still, we see abbreviated hours, limited services, and an overall lack of service. Now, more than ever, it is important to ensure your employees are engaged and that retaining them is top of your list.
Employees are the lifeblood of the organization, and not only do we need them to make the organization run but there are also several other important reasons for putting in the time and effort to retain them.
1. Retention Feeds into the Bottom Line
Recruiting and selecting employees takes time and effort, not to mention the quantifiable costs of training and onboarding. Regrettable turnover, paired with a constant flux of new and relatively inexperienced employees, can launch a direct hit to the company’s bottom line.
2. Highly Knowledgeable Workforce
When we retain our employees, we can devote the appropriate time and effort to their development. As they learn and grow in their roles, they become highly knowledgeable and maintain a high level of expertise in the organization, products, and services. It is hard to replace a long-tenured employee’s intangibles; there is a long runway to build skills and, in the interim, can slow down organizational outcomes and affect customer interactions.
3. Cultural Impact
Retaining a team builds camaraderie and strong relationships. When teammates leave, employees can begin to question their future and wonder about the current and future state of the organization. Culture plays a big part in whether or not people stay, but it also works both ways. A strong culture improves retention, but a long-tenured workforce strengthens the culture. Strong teams bonded by a positive culture are more engaged and, in turn, more satisfied.
4. Retention is a Recruiting Tool
Job seekers have several options in the current job market, and most are looking for a place to learn, grow, and succeed. Candidates are more informed than ever about the companies they apply to, and one of the metrics they check out is employee retention rates. Companies whose employees have longevity are appealing.
Seeing a high turnover rate can cause a potential candidate to pause, wondering what could be causing people to leave. In addition, development is consistently listed as an opportunity important to the modern worker. If people don’t stick around long enough for development opportunities, the organization is not very appealing. People spend a lot of time at work, and joining a team where people like to be will attract people seeking a stable and engaged organization.
5. Customer Impact
Relationships are not instantaneous, and if you operate in an industry where one-on-one interactions are key to driving and retaining business, then high turnover and numerous open positions are not ideal. When customers see a revolving door of people, it is hard for them to build the trust and relationships necessary for a true partnership. Retaining your people leads to retaining your customers and building a strong business with a steady and reliable stream of business.
Conclusion
Retaining employees isn’t just about people; it is an essential ingredient in culture, engagement, and the bottom line. Be sure that employees stay at the center of all you do and create an environment that helps them thrive and grow.
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