Employee retention is not merely a metric that alerts the HR department to take action when indicators are bad. Rather, it can be a competitive advantage and key differentiator for companies who pay close attention to it.
The true costs of employee turnover
The cost of employee turnover is incredibly high. Large U.S. businesses lose at least $1 trillion each year due to voluntary employee turnover, much of which, according to exiting workers, their managers or organizations could have prevented.
Gallup’s research shows that the cost to replace an employee can range from one-half to two times the employee’s annual salary.
The reason is that every time you have to replace an employee, it has an impact on operational costs, revenue, productivity, company culture, and customer experience, all of which end up compromising the company’s growth and profit.
So, having understood the scope of the impact of employee retention on an organization. How much should be invested to improve employee turnover?
The business success path
This is where an organization has the option to take different paths; from creating & implementing a budget, especially for this strategy, to partnering with companies that have already implemented a talent retention strategy to hire new resources at no extra cost to you.
Whatever strategy you prefer, it is crucial to understand the importance of taking action.
While creating a successful employee retention strategy may take a fair amount of effort, organizations that put in place the strategies, tools, and processes necessary to retain their best talent know that it’s a worthwhile effort that pays off.
On the other hand, organizations that don’t focus on employee retention and reducing turnover can suffer significant consequences.
Not only in terms of the hard costs associated with finding, hiring, onboarding, and training replacements, but also in terms of lost productivity and knowledge, impact on customer and employee experiences and reputations, lower morale, and weaker corporate culture.
Nearshore Strategy based on Talent Retention
During the more than 9 years we have been providing Nearshore services, our main objective as a company is to separate ourselves from our competitors through our high talent retention rates.
Our holistic approach allows our employees to have good benefits and a work-life balance and has helped us achieve the goal.
Find out more about how we can do the same for your company. Schedule a call with our experts.