News

3 years ago

How high staff turnover destroys businesses

high staff turnover

Since the Brexit vote, Britain’s manufacturers are facing the biggest shortage of skilled workers since 1989. According to research, 81% of manufacturers are facing difficulties in finding the right staff in 2018. This is why staff retention has become the focus of many organisations.

Many of you will be all too familiar with the impact high turnover can have on your business. But do you understand why?

What is staff retention?

Staff retention, or employee retention, refers to an organisation’s ability to keep staff in the business. It’s the opposite of staff turnover. In the UK, the average employee turnover rate is 15%, meaning the average employee retention rate is 85%.

Why are high staff turnovers harmful?

A high staff turnover loses businesses excessive amounts of money. When an employee leaves, they take all of their knowledge and training with them, and you don’t get a refund on recruitment expenses. It costs around £12,000 to replace one employee. So you can see how high staff turnover is often unsustainable.

Unsurprisingly, high staff turnover is a symptom of a much larger problem in your business. To stop it, and to save money, you’ll need to ask yourself why your staff keep leaving.

What causes high staff turnovers?

Businesses with high employee satisfaction rates have lower employee turnovers. The key is to make sure you provide a working environment that fosters loyalty, employee satisfaction, and a happy team.

How to boost employee satisfaction?

There are many opportunities for employees to become unhappy at work. This means there are many opportunities for employers to address low satisfaction among their employees, including:

  • Pay and benefits – Ensure employees earn enough to live a decent lifestyle and increase pay accordingly, as deserved. Adding benefits can distinguish your company from the thousands of others that offer the same role and similar pay.
  • Recognition and appreciation – Show your staff you don’t take them for granted by giving gifts for hard work, hosting staff reward parties, and remember that even kind words can go far.
  • Be realistic and lead well – Employees will leave if they feel management has unrealistic expectations or poor leadership skills. This can create tension among your workers and people won’t enjoy coming to work where they feel constantly pressured.

Once you know what is causing high turnover in your business, addressing the problem is relatively simple. But it’s always best to make sure these issues don’t develop at all.

At Premier Recruitment Services, we use unique software to promote employee satisfaction and productivity. We don’t just recruit the best staff on your behalf; we run employee reward schemes, offer 24-hour assistance within your organisation, implement automation to speed up your processes, greet and train new staff, and ensure no query goes unanswered. To increase your employee retention today, get in touch with us today on 01782 213 116.

You May Also Be Interested In

News

3 years ago

In a world of skill shortages, a country’s greatest resource is its people

News

3 years ago

Why you should put more effort into recruitment

News

3 years ago

Three non-negotiables for your supplier

News

3 years ago

Top tips to help you give effective staff feedback