The Bureau of Labor Statistics measures the state of the workforce by comparing hires with separations or people leaving their jobs for whatever reason. This year, new hires are outpacing separation, although both are somewhat low.
This is good news because it means that employee retention is in a healthy place. It’s especially impressive because both hiring and separation spiked during the pandemic. Employee retention seems to have recovered in the two years since.
We cannot stress enough the importance of employee retention. There are many practical reasons to work towards employee retention, not just for the company but for the employees as well. We’ll discuss some of the benefits of employee retention and how to promote it in this article.
What is Employee Retention?
What is employee retention? Employee retention is a measure of how long a company can keep employees on staff. Higher retention rates means that employees are leaving the company less often.
This means that you don’t have to hire new employees as often, which is great news for your budget. The average cost of hiring a new employee is at least $4,000, and can be much higher in some cases.
Keeping employees for longer isn’t just more affordable but more efficient as well. Lower employee retention means that you don’t have to train employees as often.
In addition to saving money on employee training, you might find that the business runs better over time as your employees not only earn to do their jobs but master them.
You can expedite this process with an employee growth plan. An employee growth plan refers to any on-the-job training and similar opportunities you offer your employees.
How to Improve Retention
Retention is something all companies should try to achieve, but the question is how. The simplest answer is to treat your employees well. Many employees claim that company culture is one of the biggest factors in determining whether they stay at a job.
Offering helpful activities and benefits for employees will do a lot to increase retention. While many of these programs cost money, not all of them do. Even the ones that do cost money, like paid maternity leave and tuition reimbursement, are worth it in the long run.
Treating employees well and giving them fun ways to engage at work will increase morale, as well. Morale will help with productivity because we don’t mind working as much when we’re in a good mood.
The Importance of Employee Retention
Many companies these days tend to overlook the importance of employee retention. The truth is that happy; experienced employees can do a lot for your bottom line. We’ve discussed some of the benefits of employee retention and how to retain employees in this article, but there’s always more to learn.
If you’re currently looking for a qualified candidate to fill a role in your company, we encourage you to contact us. Connecting job seekers to prospective employers is part of our job, and we’re very good at it.