Retaining Talent and the True Cost of Replacing Talent

Attracting and retaining talented people is vital for a business’s success. To avoid additional costs, businesses need to invest in recruitment and retention strategies to thrive in today’s economy.

According to research by Oxford Economics and Unum, the average cost of turnover per employee (earning £25,000 or more) is £30,614.

In this blog, we’ll cover the effects of employee turnover and strategies you can use to prevent it.

What is the True Cost of Losing an Employee?

The key factors that contribute are:

• Recruitment costs: This includes the direct costs of hiring a new employee, like advertising, screening, interviewing, and hiring.
• Onboarding costs: The cost of the onboarding process, including training replacements and management time.
• Lost productivity: It may take a new employee one to two years to reach the productivity of an existing person, resulting in indirect costs to your company.
• Lost engagement and impact on employee morale: Other employees who see high turnover tend to disengage and lose productivity, affecting team morale.
• Customer/client service and errors: New employees take longer to complete their work and are often less adept at solving problems.
• Training costs: Over two to three years, a business is likely to invest 10% to 20% of an employee’s salary or more in training.
• Lost institutional knowledge: When highly skilled or longtime employees leave, your business loses some institutional knowledge, which is the combined skill set and experience of your business.
• Cultural impact: Whenever someone leaves, others take time to ask why. Additionally, there may be a customer/client impact on your business if your turnover affects your resource levels.

So, How Can You Retain Your Top Talent

Invest in Learning and Development

It is important that managers are fully equipped with the skills they need to be confident in to deliver good people management. People Management report that employees who feel well supported by their manager are 3.4 times more likely to feel engaged at work.

Our 1 or 2 day Line Manager Training programmes offer skills and techniques to upskill managers to be the best they can possibly be.

Alternatively, we can create bespoke training packages to upskill your managers on a number of HR related topics.

Offer Flexible Working

Allowing employees a bit more flexibility in their working hours and work style makes employees feel more trusted and helps them achieve a better work life balance.

Employee needs are different so offering flexibility on work location such as, hybrid working, fully remote or fully office based all help to increase retention.

Consider Your Recruitment Process

Happy employees tend to stay at their jobs, and the hiring process needs to take this into account. Businesses need to target and consider hiring new candidates that understand their roles and job descriptions, have a smooth onboarding process, and match the company culture, so their job satisfaction levels stay high.

Measure Employee Engagement

The impact of employee engagement on employee retention is massive. Engaged employees are more likely to remain at your company and contribute to a stronger company culture. Employees often leave their jobs because they feel a lack of connection with their role or their manager.

A positive company culture is vital. There are various ways to communicate your company culture and values. Ensure your team have adequate information about company policies, benefits and your goals and values.

When you measure employee engagement, you get solid, actionable data that tells you whether you have engaged employees or not. You could ask whether employees feel valued and can see a future with your business or whether you’re helping them to achieve their career development goals.

How Hallidays HR can help

If you would like to discuss any of the above in more detail, then please do not hesitate to contact us on 0161 476 8276 or email. And of course, visit the website: Hallidays HR Website and our LinkedIn page: Hallidays HR LinkedIn