The cost of replacing staff
It costs on average, 6-9 months salary to replace a member of staff. So, not only will you be losing a valuable employee but it will take a long time to recoup the money lost on recruiting for the role. These costs of replacing staff are made up of a variety of things.
- Advertising recruitment costs. Whether conducted by your HR department or an external recruitment agency.
- Time and staff to review applications and to interview prospective candidates
- Training and upskilling new employees. It can take time and cost to get a new staff member up to the same skill as the employee that is being replaced.
- Loss of productivity. Whist new staff are learning the ropes they will get less work done than a more experienced employee
Whilst all this is going on less day to day business is being completed. There is a lot to consider when employing new staff and most businesses do not keep track of the total spend to recruit just one person.
Why do employees leave?
There are many different factors depending on your organisation but there are some reasons that come up time and time again. The main and most common problem is a lack of career progression. In fact, 77% of employees feel it is up to themselves to develop their careers at the company. There is also the time it takes to commute to the workplace which has an impact of stress and work-life balance of staff.
Salary, of course, is another factor if they are offered a higher paid job that is the same as their current role, it is tempting to move on if there are no other incentives for staying with your company. Then there is staff morale, problems with management or other colleagues can be a factor which causes you to lose employees.
Review your own leavers
If you have high staff turnover, or you have noticed an increase in staff looking elsewhere, you might want to review why your particular staff are leaving. Conducting leaver interviews is a great way to do this and most will be honest and open about why they are moving on. This can provide valuable information and enable you to make any appropriate changes to retain the employees you have.
How to retain your staff
When you look at the figure of around 30k to replace a single member of staff, it can actually pay to keep your current staff in their roles. If you provide a great place to work with excellent benefits your employees will be happy to come to work and want to remain loyal to your company. But how can you do this and save money too?
Offer a competitive salary
If you find staff are leaving due to wages then you should consider salary reviews. Offering a competitive salary, in the beginning, is one thing, but reviewing during employment salary is another. Having a regular career chat with your employees will help to address any queries they may have and give a chance to offer feedback and reward. These meetings may lead to further development required or a wage increase due to service and performance.
Provide staff transport solutions
The commute can be one of the most stressful times of the day and the duration of this can be the make or break for some employees. By providing a commuter bus service you can cut out the time and cost of the commute for your employees and give a real incentive for new staff to join your company. You will also save on parking costs as fewer staff will need to drive to the workplace. Take a look at what solutions Zeelo can offer your business here.
Create a career development pathway
If your employees know exactly where they can go within your business and the route they need to take to get there, they are more likely to want to stay and develop with you. This doesn’t need to be costly either. Just being open and honest about promotion, training and development will give your staff the peace of mind that they can progress or not whichever they choose. As above having a regular career chat with employees will give you an idea about what their expectations and ambitions are.
Promote a healthy work-life balance
Stress is a leading cause of sickness in the workplace. Not only do you want to retain your employees but you want to make sure they are at work too. Because days lots to sickness can cause loss of productivity and a cost to the business too. Making sure working hours are amenable and flexible can help with this. Plus making sure staff take annual leave and their regular breaks will make a difference. Promote a sense of wellbeing in the workplace and your staff will feel cared for and more likely to want to work for you as an employer.
How will you save money and retain staff?
With the cost of recruiting just one new member of staff being so high, it is well worth exploring ways to keep your existing staff in position. Enhancing the working environment and improving employee benefits are great ways to make sure your staff stay where they are. Keeping that knowledge and experience within your business. Get in contact with Zeelo today for all your employee transport solutions.