What is the biggest financial and productivity challenge in businesses? Employee turnover
When there is employee turnover in a small business, there is a trickle down effect in every area of the business. There is a gap in productivity because of the absent person, the focus of management shifts to reacting to that gap and to hiring a new employee, and the climate of a business is changed. The cost of a low employee retention rate for a small business is huge. The loss in productivity and search for a new employee can cost a business up to $50,000.That number only increases with the specialty of the position.
Why do employees leave a business?
The most common reason for employees to leave a business is because they are not inspired by the work environment. With so many options for local and remote jobs, it is a challenge for businesses to keep their employees. The millennial generation that are fulfilling many of the leadership roles have different visions of work and priorities in their careers. Turnover will continue to be a significant cost for many businesses.
How can small businesses attract and retain employees in this work environment?
The simple answer is to strengthen your business culture by focusing on the needs of your employees. Involve them in decision making, challenge them with new tasks, ask them for their unique perspective to solve problems. When employees are part of business operations, they become more invested in their work. Create opportunities in your work environment to enable relationships to develop. People want more from their work environment than just a paycheck. Professional development opportunities and developing relationships will keep your employees interested and engaged.
Invest in your employees to create a stronger foundation for your business and to prepare for growth.
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