There’s a saying in business: “A company is only as good as its people”, which is why finding and hiring the right people is so critical to business success. But it’s not just about choosing the right staff member for the job, it’s about keeping them. Here are three benefits of having a low staff turnover and high staff retention rate and ways to achieve them.
Staff turnover costs Australian business $3.8 billion annually in lost productivity alone, with an estimated $3.85 million spent on recruitment costs. Therefore it pays not only to invest in the right people but to implement strategies to retain them.
These include giving prospective staff a comprehensive idea of what will be involved in the day-to-day tasks of their role and an honest appraisal of expectations. This is also where on the job experience and training can be imperative to finding the right person to suit your company. Spending time with a pool of prospective employees to learn how your business works inside out compounds into saved time and money down the road. Not only do they know how to do the job as you’ve trained them to do it, but they understand the culture of your workplace, meaning you’re all pulling together in the one direction.
If your business isn’t employing a progressive hiring process aimed at increasing staff retention, you could be costing your business more than you think.
The cold hard fact is 1 in 4 Australians will leave their job within the first 12 months of employment, and the effects stretch far beyond a financial toll.
One of the biggest negative impacts is on staff morale. Having a revolving door of staff members makes it hard to establish a solid team which works to utilise each other’s strengths, and frankly it leaves people pondering “what’s wrong with this place?” It also puts strain on other staff who pick up the slack while new employees learn the ropes.
Ironically, this situation is often cynical; good morale makes people want to stay and an established team of workmates leads to good morale.
The best companies have staff who know exactly what they are doing, with some solid experience under their belt. This is a team of employees who fronts the public with professionalism and resilience, displaying problem solving skills and reflecting the ethos of the business. Often it’s time on the job that creates this persona, but it’s also about familiarising staff with the systems, procedures and nuances of their industry.
The Father James Grant Foundation works with businesses to train and provide real-life employment skills for youth seeking to enter the workforce, which in turn offers a fulfilling and cost-effective human resource solution increasing staff retention and loyalty. To discover more about how we can work with your business to improve your retention and the outlook for local youth, click here.