Do you know that transitioning an employee into a new role, whether or not he or she has previous experience in that position, costs you big time? Your company would suffer and spend more if that employee would leave soon after the transition period.
The Cost of Losing an Employee
In Australia alone, it costs approximately $18,000 to transition a talent who’s entering the workforce for the first time. If you’re replacing a vacant people-management role, you would have to spend approximately $25,000 for an internally hired employee to get the hang of the position.
These numbers go to show why employee retention is essential. Apart from the dollar amount, you also have to invest time and energy in training your new talents and transforming them into your company’s shining stars.
Clever Ways to Retain Top Talent
Whether you are a small business or a big corporation, you need to be wise in using your resources to keep the cash flow going. Instead of allocating $18,000-$25,000 for the turnover of each employee, think of clever ways to retain your top talent so that they will not go looking for better opportunities somewhere else.
Boost Employee Morale
Happy employees are productive employees. Plus, they are more likely to stay at a job longer than dissatisfied workers. As an employer, you are responsible for instilling a bit of fun in the workplace to keep people motivated. Companies must give their employees reason to believe. From the interview to the onboarding process, be honest about the job details, and make them understand your organization’s true vision.
Another way to boost office morale is to instill fun in the environment. If your office’s design needs updating, scout for the best Sydney office workstations, go green by adding landscaping or plants, or turn pantries into playrooms. You can also run a survey and ask your employees directly about their preferences in their working environment.
Recognize Your People and Celebrate Wins
Throwing pizza parties and sending e-mails to celebrate wins are overrated. Be the appreciative boss who says thank you for small gestures through random Post-It notes, invites employees for themed team lunches outside the office, and does not hesitate to use their social media page for praising outstanding employees.
Be creative in your employee recognition schemes, and you will be surprised by how much your people will appreciate you as a leader. Workers stick to their jobs when they know their efforts—even the smallest ones—are recognized by the management.
Hire Right from the Start
In the end, make sure to invest in your HR team. If you are a small business and can’t afford to add a few more people to your payroll, outsource your HR department only when you need them and let the pros do their job. Remember that you cannot retain top talent if you do not hire employees with potential in the first place. Hire right from the start, and none of your time, money, and energy will go down the drain.