1. Cost reduction
Replacing a departing employee is costly. Plus, recruiting and onboarding is time consuming. Your best bet is to shape a solid retention strategy to minimize resource loss.
2. Higher productivity
When your workforce is constantly turning over, it’s difficult to build teams of productive, knowledgeable, and skilled employees. Ramping up employees toward productivity can take many months, and your other employees will have to pick up the slack.
3. Better employee experience
Tenured employees have the company expertise needed to solve customer problems and keep them happy. Plus, when you engage employees with an effective retention strategy, they will exude those feelings of happiness to customers.
4. Healthy company culture
Company culture is a key factor behind whether your employees leave or stay. Organizations who have high retention typically have an inclusive culture that celebrates all employees, and you won’t dread logging on or walking into the office everyday.
5. Increased employee engagement
The relationship between employee engagement and retention is strong. Those with high retention can experience all of the benefits of employee engagement, including reduced absenteeism, better employee health, higher profitability, and happy, satisfied employees.
6. Improved morale
When your employees leave, it can be a disappointment for remaining employees. But when your retention rate is high, employee morale improves. When morale improves, your workplace will be a better, more positive place to work.
7. Higher revenue and better ROI
It’s difficult to get a sufficient return on your onboarding and recruiting initiatives when experiencing high turnover. But when you have an effective retention strategy, the cost it takes to ramp up employees will seem miniscule in comparison to the outcomes they drive throughout their tenure.