When it comes to running a successful business, prioritizing employee retention is not just a cost-saving measure; it’s a strategic investment in the stability of a company. In addition to contributing to a positive work environment, enhancing a workplace’s reputation, attracting and keeping top talent, and prioritizing employee retention can impact the overall big picture. Keep reading for more information on important things to consider when working to retain employees.
High employee turnover can be expensive due to recruitment, training, and onboarding costs. Not to mention, employees may find their workload increasing as companies attempt to fill empty seats. As a result, this can impact morale.
That said, a stable workforce provides a foundation for strategic planning and long-term business goals. Frequent turnover can disrupt these goals and hinder the execution of organizational strategies.
Findings from a 2019 Gallup study revealed that “28% of full-time employees reported feeling burned out at work very often or always.” In fact, “an additional 48% reported experiencing burnout ‘sometimes.'” This indicates that nearly eight in 10 full-time employees grapple with workplace burnout to some degree.
In 2019, the Harvard Business Review referenced a study conducted by Stanford to report on the financial toll of burnout on a company’s bottom line, unveiling a whopping hit to profits.
The Stanford study found that burnout accounts for nearly $190 billion. That results in almost “8% of national healthcare outlays and nearly 120,000 deaths a year,” per the report. “Worldwide, 615 million suffer from depression and anxiety, and, according to a recent WHO study, which costs the global workforce an estimated $1 trillion in lost productivity each year.”
The report added that caregiver roles — from doctors to nurses — are most at risk of burnout. In fact, the cost could be life or death.
“Doctors and nurses are some of the most susceptible to burnout, and the consequences can mean life or death; suicide rates among caregivers are dramatically higher than that of the general public — 40% higher for men and 130% higher for women,” the study revealed.
High employee turnover can negatively impact a company’s reputation, making it less attractive to potential employees and clients. A reputation for employee retention can enhance the company’s image in the market.
Meanwhile, In Business suggests that treating employees well ensures that your company is highlighted in a positive light. To get ahead, employers should approach employee satisfaction with the same care they would customer satisfaction.
“One of the easiest ways to enhance employee experience is to ask for and welcome employees’ feedback,” the June 2023 op-ed reads. “They have great insight into customer needs because they are the people who directly interact with customers.”
Loyal employees often have a stronger sense of commitment to their work. As a result, they make more positive contributions to overall team dynamics and long-term goals.
That said, fostering a work environment that prioritizes employee retention is pivotal for continued success. Businesses will retain top talent and cultivate a thriving workplace culture that fuels growth by focusing on three main things: positive work environments, competitive compensation, and meaningful employee engagement. Good luck!