For obvious reasons, employee retention helps in cost reduction. Companies spend millions of dollars in finding, recruiting, onboarding, and training new hires yearly. Costs for advertising, interviewing, and training expenses can instead be used in improving other aspects of the business such as reskilling and upskilling current employees, better facilities, and more benefits to offer to the workforce.
An important part of high retention rates is to have a smooth and smart onboarding process. This is the first step of an employee’s journey with a company and the efforts to make them feel important and welcomed in the organization should start as early as then. It is during this stage that the new employee is forming opinions on the company and whether they would enjoy working for their employer in the long run.
The onboarding process is a great way to not only teach new employees about their role, but to also immerse them in the company culture and create connections with co-workers. Providing a clear set of goals for them during their time as an employee assures them that the company wants to grow with them over time – which increases their satisfaction with the company.
Having a constant turnover of employees can negatively affect the morale and engagement of the workforce. Employees who stay with the company constantly lose work connections which could see them shouldering more work and responsibilities – leading to possible burnouts and lower productivity rates.