In today’s world, finding the right talent isn’t easy, and as many as 75% of companies struggle with recruitment.

People have a huge amount of options these days, especially with the increasing popularity of remote work. Because of this, it’s important to hold on to good employees when you get them. This isn’t always easy, but ensuring your employees want to stay with your company will be incredibly beneficial for your business.

In this guide, we’ll go over some of the key reasons why employee retention is important. Keep reading for more.

Lower Costs

All businesses try to keep operational costs down, and employee retention is ideal for this. Recruitment can take a lot of time and money, and this goes beyond just hiring. Processes like advertising, interviewing, onboarding, training, and more can all add to the costs.

Keeping employee turnover to a minimum will reduce recruitment expenses. Experienced employees will also typically be more productive and engaged than new ones. The results fully trained workers produce will be superior in almost all cases.

Improved Morale

Employee morale can have a huge impact on what your business can achieve. If workers are constantly coming in and going out, morale is likely to drop.

This can be especially true if you don’t have suitable replacements lined up whenever someone leaves. When there are staff shortages, those who remain may end up having to take on heavier workloads. This will grate on them, reducing their morale and making them more likely to leave themselves.

Experienced Employees

When an employee leaves, it’s not just manpower you lose. The training, experience, and skills they have will go with them. While new hires might have some of these under their belt, it will rarely be the same.

On top of this, any relationships that they’ve built during their time at your company will be lost. All of this loss can reduce the potential you have to provide value to your customers.

If you lose senior employees and top performers, there can also be knock-on effects throughout your organisation. This can impact other workers, so retaining senior employees is always in your best interest.

Recruitment and Training Efficiency

When you take on new employees, you must specify certain requirements. This will typically relate to their skills and experience to ensure they can do the job you’re hiring them for.

With every hire, however, some degree of training will be needed. If you have another experienced employee training any new hires, they won’t be able to focus entirely on their own job role. Working on employee retention can help with this issue.

It’s often a good approach to recruiting internally. Current employees already understand the workings of your company and the rest of your team know who they are and how they work. This can help you save thousands of dollars by making things more efficient.

Increased Productivity

Productivity will directly impact the profits your business can make, and a high turnover rate will reduce productivity significantly. Even after completing their training, a new hire will typically take one to two years to reach the same level of productivity as an existing employee. During this time, you simply won’t be getting the same output.

Additionally, new hires will need time to form relationships with their other employees and customers. The better your employee retention is, the less of an issue this will be. It will result in more productive employees and better relationships both within your workforce and with your customers.

Better Customer Experience

Better relationships aren’t the only way customers will benefit as they’ll also get a better customer experience. How customers perceive your brand will be a huge driving factor in your overall business success. As such, you want them to have the best possible experience from their first interaction to after-sale support.

New employees might be a bit slower or might not have the best approach when interacting with customers. This can damage the overall customer experience and lead to more negative opinions.

When customers have bad experiences, there’s a chance they’ll mention it to their friends/families, or even post about it online. Reviews are very important, so you don’t want to end up with a lot of people talking about your business in a negative light.

Improved Corporate Culture

Company culture comes from the preferences, perceptions, and behaviors of everyone who works for your company. This is vital for effective recruitment, as up to 86% of job seekers say that company culture is somewhat or very important.

If your company is known to have a less-than-ideal culture, many potential job seekers will turn away. Additionally, current employees will be far more likely to leave if they’re not happy with the culture as it is.

The culture comes from both how you choose to manage the company as well as the people who currently work there. If new hires walk into a good environment, they’ll then exude this from themselves, helping to support a culture that more people are happy with.

Better Employee Experience

Every employee will have their own interactions with your company from the day they apply until the day they leave. This will be based on their leaders, colleagues, and the organization as a whole.

Providing a positive employee experience is one of the best ways to make people want to work for your company. While there are factors affecting the employee experience that you can’t control, there are others you can. Make improvements where possible to make it easier to attract talent and retain employees.

Why Employee Retention Is Important

When looking at why employee retention is important, the overarching idea is that it will help your company produce the best results. Keeping employees will save time and money while allowing you to provide a better experience to your customers. A lot of job seekers these days are interested in remote working, so implementing this can help significantly with employee retention.

Bradford Jacobs specialises in attracting and bringing in the best talent regardless of geographic location. We operate in more than 180 countries and have over 20 years of experience. Take a look at our services page to find out more about how we can help your organisation today.