Why Is Employee Retention Important?January 15, 2023
Categorised in: News
When it comes to running a successful business, there are few things more important and significant than loyal staff.
Hiring talented people and keeping them on board ensures that your business has a team who knows the company and cares about how the business performs.
In order to build a loyal, happy team, management must focus on measures to improve employee retention.
So Why Is Employee Retention Important?
When you prioritise employee retention in your business, you ensure that your company has an experienced and knowledgeable team that is well-versed in your operations, products or services, and overall culture.
In turn, this translates to excellent customer service that will keep customers coming back to your business.
Low Recruitment Costs
From advertising job roles and sifting through CVs to back-to-back interviews and recruiter fees — hiring new staff can get expensive.
If you have a high staff turnover, recruitment costs all add up and can hit your business with a hefty bill. By improving your employee retention, you’ll save valuable time and money that you can use to reinvest back into your company.
Employee retention and well-being go hand in hand; when staff members feel valued and supported, they’re usually happier to come to work plus will carry out their tasks as effectively as possible.
On the other hand, poor employee retention and constantly hiring new staff reduces productivity, as you and your team will spend more time training and onboarding instead of focusing on tasks that will drive your business forward, not to mention the associated costs of rehiring into your business.
Positive Work Environment
If you have a positive attitude towards employee retention and show your staff that they are essential to the business, you will foster a positive working environment that will encourage your staff to thrive.
Staff should go to work feeling valued and important; concentrating on your employee retention rate will support this narrative and help your staff to enjoy their jobs, boosting morale and improving employee engagement.
Improved Bottom Line
Companies that focus on improving their employee retention will start to experience positive changes within their team, but investing in employee retention also has financial benefits that you can enjoy.
Better employee retention reduces hiring and recruitment costs while improving your productivity, efficiency and customer service — which will positively impact your business’s bottom line. It’s a win win!
How To Improve Employee Retention
Offering employee benefits is a brilliant way to improve engagement and, in turn, retention of employees. Take a look at our top recommendations for employee benefits that enhance retention.
Discover how Hive360 can Benefit your Business as well as the ability to retain employees by contacting us here.