Replacing an employee comes with a high price tag. Experts estimate this cost to average 30 to 150% of their annual wages. For demonstration purposes, using a 40% replacement cost for an employee earning $20/hour, calculates to $16,000 . . . per employee! How many staff members did you replace last year?
Want to avoid these decreases to your bottom line? Consider the following:
- Pay attention to your employees – communicate regularly with staff regarding their needs and offer flexible solutions to problems and concerns
- Set compensation and benefit packages that have the appropriate value – review HR industry standards and keep updated on trends and changes in expectations
- Get employees engaged – allow for contributions in decision making and keep communication lines open to ensure staff feels like they re valuable members of a team
- Hire right from the start – take the time to find the best candidates possible at the onset, making sure their skill sets and personalities fit the position and the company culture
- Promote positivity – make sure to offer rewards and praise when your staff is doing a good job (a little acknowledgement goes a very long way)
- Conduct appropriate evaluations – performance reviews, if done right, are important to keeping staff on the right track and giving them solid guidelines of expectations so they feel confident in what they are doing and how they are contributing
- Establish opportunities for growth – your employees want to succeed, and that helps you, too, so encourage skill development, coaching, training and challenging projects to keep them engaged and motivated
A happy worker is a productive worker, and a healthy work environment full of flexibility, encouragement, open communication and opportunity for contribution and growth are essential.