Employees are the lifeblood of any business. They ensure that all work is completed to a high standard, which is where the revenue is made. When you lose an employee, it can often be very tough on the wider team and often also comes at great financial cost.
According to Indeed’s happiness at work survey, 21% of employees are unhappy at work. This suggests that a fifth of employees will be actively seeking to find a different role and that could include some of your staff too.
This article will discuss the cost of employees leaving your business and how you can prevent this from happening.
Join The European Business Briefing
New subscribers this quarter are entered into a draw to win a Rolex Submariner. Join 40,000+ founders, investors and executives who read EBM every day.
SubscribeTime
It’s only when someone hands their notice in that hiring proceedings can begin. This process will most likely start straight away, but it shouldn’t be rushed to ensure you employ the right person. You’ll have interviews with several candidates and the final few may even interview several times, which could span over a few weeks.
Once you’ve hired someone, they’ll have to work their notice period which is usually at least a month. When they eventually come in for their first day, training begins. According to research conducted by Oxford Economics in 2014, a new employee from the same sector will take 15 weeks to reach optimal productivity, while someone hired out of unemployment or inactivity will take an entire year.
With so much recruitment and training time required to get people up to scratch, your business will be missing out on vital work for clients, which means a further loss of revenue too.
Financial cost
The cost of hiring the new worker includes advertising, paying a recruitment company and potentially appointing a temporary staff member. The bulk of the cost, however, will come from training the worker to the standard required of them.
It goes without saying, therefore, that it’s important to avoid losing talented employees.
How to stop employees from leaving
As you can see, hiring a replacement for staff can cost your business a lot of time and money. By providing the following benefits, however, you can keep your workers happier and prevent more from leaving too.
- Flexible hours
- Regular pay rise reviews
- Health insurance
- Good annual leave
- Training opportunities
- Hybrid working
- Free gym membership
- Free food and drink in the office
With these additional perks, your team will feel valued and be more likely to stay. In the event that they do still leave, these benefits will be a huge pull factor for your business, meaning hiring a quality replacement may be even easier too.
