Reduced Employee Productivity and Customer Satisfaction
When an employee departs from a company, it’s often a lot more difficult than people think to replace them, especially for high-paying, high-competency positions. Regardless of the position, there is always an adjustment period where the new employee — permanent or temporary — will have to go through the learning curve. In general, it takes around 8 months for a new hire to reach full productivity. Over that period, you can imagine how substantial the cost can be.
There’s also the factor of customer dissatisfaction. The majority of customers continue to do business with a provider because of the relationships they build with people in the company. Brand loyalty is absolutely vital for a business’ health. New employees are prone to mistakes, which can lead to frustrated customers. It can take only a few bad interactions to ruin a working relationship that has been building for years.
Lost Employee Knowledge
In most cases, employees work in groups, teams, departments, etc. The more diverse the team is, the more knowledge-sharing can occur. It’s a great operational strategy for a company because each group is tackling problems by approaching them from a wide range of angles. One employee might have some unique insight on processes or knows the ins and outs of a customer’s style of doing business.
When an employee leaves, they take that knowledge with them. Even worse, they take that knowledge with them and go to work for a competitor. It’s somewhat difficult to put the true cost of lost knowledge into a fixed amount, but its effect can’t be overstated.
Employee Retention is Vital for Your Business
Getting the hire right from the beginning is essential for your business’ health. Minimizing turnover not only helps reduce the impact of all the points highlighted above, but also keeps morale high in your workplace, and helps build a company culture that will attract the correct calibre of candidate as you expand.
What’s the most effective way to ensure you’re giving yourself the best possible chance of retaining your employees long-term? Hiring a professional hiring service that knows how to recruit, tailored to your business’ needs. At Burton Recruitment, we understand that each client is unique. That’s why we create personalized approaches to recruitment, which sets us apart. The proof is in the pudding, Burton Recruitment has a 94% retention rate of all placed candidates over a 2-year period.
Don’t be a victim of employee attrition, reach out to us here today.