This week Axis for Business asks, how much will employee turnover cost your small business, and how can you make sure an employee stays with your company?
Employee Turnover is a Serious Risk to Your Bottom Line
As a truly independent energy and telecoms provider, who bring competitively priced services to businesses across the UK, we know how important saving money is to small businesses. Because we always listen to what our customers say, we know that many worry about the cost of employee turnover to their bottom lines.
And they’re right to worry. Did you know that a report carried out by Oxford Economics earlier this year, revealed that it costs £30,614 to replace an employee? This is because not only is it costly to recruit and absorb a new employee, but a small business incurs a significant loss in output before the new employee can be brought up to speed.
Axis for Business’ Five Best Ways to Keep a Valuable Employee
So what is the best way to ensure that employee turnover doesn’t hit your profit margins? Make sure they don’t leave. That is why we have supplied these top five tips for keeping a valuable employee at your business:
Be Polite: The simplest way to secure an employee’s loyalty is to treat them right. Nobody likes a bad boss, and often, it doesn’t matter how much an employee is earning; they’ll still leave if they feel they are being treated unfairly.
Incentivise Them: An undervalued employee is a disloyal one. One of the best ways to make an employee feel valued is to provide them with a reward, to reassure them that the extra effort they’ve spent on their latest project is truly appreciated.
Provide an Avenue for Career Progression: No employee wants to stay in the same position forever; they want to progress in their career. Provide them with an avenue for career progression, and not only do you convince them that they are wisely using their time by staying with you, but you are training your own higher management from the ground up.
Promote Office Relations: Employees often enjoy their working day more, if they are working in a friendly environment. This is why it’s a wise idea to invest in team bonding exercises, so that your employees feel comfortable working with their colleagues, and as such, have no desire to leave.
Challenge Them: A bored employee is one who looks at other jobs on their lunch break. Present challenging projects to your employees to ensure they remain mentally engaged in the work place; thus, don’t seek mental engagement elsewhere.
The costs of employee turnover to a small business are real, and not to be ignored. If you are looking to limit the damage employee turnover can play on your bottom line, make sure that they want to stay with your company.