What is Employee Retention?
Essentially, this refers to the actions and practices undertaken by a business that aim to limit employee turnover. It can involve improving or maintaining a positive working environment which, in turn, incentivises employees to remain at the company. Indeed, business will offer a variety of services and staff perks with intention to attract and retain the best talent.
Measures that are undertaken by companies to improve employee retention levels often fall into one of following categories:
Why is Employee Retention Important?
Some studies have estimated that replacing an employee can cost as much as 6-9 months of the position’s annual salary. This is due to high training costs, loss of productivity, and other expenses. So, naturally, poor employee retention often hits small and medium-sized businesses the hardest. And, after the pandemic and subsequent surge in employee turnover from the ‘Great Resignation’, many companies simply cannot afford this.
Meanwhile, as we discussed in a Recent Article on Improving Employee Retention Rates, engagement is also greatly affected. Employee engagement is essential for smaller companies as it normally effects customer satisfaction, productivity or sales levels, and future planning capabilities.
Therefore, the key benefits of high employee retention rates for these businesses usually include:
- Reduced operational costs (talent attraction, recruitment, and training costs are reduced)
- Improved company morale, Employee Engagement, and better staff-manager relations
- Increased overall productivity, which helps to achieve higher profitability and growth potential
- A better customer and applicant experience
How does Hive360 help?
Our solutions are designed to offer your business support and incentives for all staff and potential recruits. We provide unique and dynamic employee benefits, which are delivered through our Engage App. This comes as standard with Our Payroll Solutions, and features an array of vital wellbeing support to help strengthen your workplace environment.
In short, a varied set of perks helps greatly when improving employee retention, so that is exactly what we offer.