Why retention is as important as recruitment
All too often, when it comes to filling their offices with talented and motivated individuals, companies put a lot more time, money and effort into recruitment than retention. According to figures from the US, each year North American companies spend a staggering $72 billion to find and hire talent but just $1.5 billion to retain it.
As a result, even if companies manage to recruit great people to their organisations, they often see them moving on again within a few years or even months. As well as having an impact on company morale and corporate finances, this high level of turnover can also affect productivity. Keep reading to find out more.
Why is important retention
Retention is important for a number of reasons. For many businesses, the most important of these is financial. Hiring new, talented individuals takes time and money. According to research carried out by Oxford Economics, it can cost as much as £30,000 to replace a member of staff. This high cost is caused both by a loss of productivity while the replacement employee gets up to speed and by the logistical cost of finding and hiring the new member of staff.
A high turnover rate can also have a negative affect on staff morale. As morale is closely linked to productivity, this can have a direct impact on a business’ bottom line.
How to improve retention with better recruitment
Often, when a person leaves a business soon after joining it’s because they were ‘mis-sold’ the job. Sometimes company bosses are so keen to recruit a particular person, they fail to give them an accurate idea about what exactly the role involves and what the new recruit’s everyday life will be like when they join the company.
Improving recruitment techniques can therefore go a long way to boosting retention rates. Finding the right person for a role, and ensuring they know exactly what will be expected of them, should help to make sure that new recruits don’t leave as soon as their probationary period is up.
Reducing turnover with improved working conditions
Another major factor in reducing turnover and improving retention is working conditions. Employees will be much more likely to stay at an organisation if they feel that they’re valued and well treated. Steps like offering flexible working hours, providing opportunities for career advancement and creating a positive working environment can all help to improve staff retention and reduce turnover.
Performing exit interviews can be a very useful way for businesses to find out exactly which of these factors are impacting on their workforce. By asking employees who are leaving about their reasons for moving on, and then taking action on the answers, businesses can help to improve working conditions, improve employee morale and make the company more productive.
Boosting employee retention rates can help businesses to save money, increase productivity and boost profitability. To find out how high-quality recruitment could help to improve your retention rates, explore our site or get in touch with a member of our team.