Have you ever sat down and thought about how much time, energy, and money you spend on hiring and training new employees? The process can be exhausting, costly and time-consuming. Employee turnover is one of the highest costs associated with running a business. Investing in employee retention strategies with Muniz can save you significant capital.

The Cost of Employee Turnover

The national average turnover rate is 19%. Replacing a single $10 per hour employee costs, on average, around $3,300. As the salary and requirements for a job position increase so do the estimated costs of replacing an employee in that position. Where is the money going?

• Hiring costs

Finding qualified candidates through advertising an open position or employing the help of a staffing agency or recruiter, represent an immediate upfront cost. Furthermore, there is the time spent reviewing applications and resumes, interviewing candidates, checking references, preparing job offers, and hiring paperwork. All of which could be avoided by retaining current employees.

• Onboarding costs

Every company has a different process for onboarding new employees. Training programs, salaries of any trainers, drug testing, background checks, paperwork processing, and new equipment and office furniture all add up. On average 10-20% of the employee’s salary is spent on the onboarding transition period.

• Lost productivity

When you bring on a new employee to fill the shoes of an experienced, long-term employee it, on average, takes them two full years to reach the productivity level of the previous employee. New hires rarely function at the same level as a highly-skilled employee who has left the company.

• Lost engagement

Employees stay more focused and engaged when they feel like they’re part of a team and they see consistent progress. High turnover rates lead to demotivated employees achieving less. When employees leave, current employees feel like they’re losing a never-ending battle to rebuild the team.

Best Employee Retention Strategies

As you can see, investing in employee retention will save your company money. You must plan to combat hard-working employees from leaving.

First, be sure you’re hiring the right people. Completing background checks and following up with references can screen out poor candidates before they even start. Non-teachable soft skills like time management, temperament, willingness to be coached, enthusiasm, interpersonal skills, and work ethic should be at the top your priority list. Technical skills can always be taught or added to, given you have hired the right candidate.

A second way to improve your employee retention is to use your human resources department to its full capacity. Ensure they conduct exit interviews to find out why employees are leaving. Investigate any issues and address any problems that arise in a timely manner.

Next, you can significantly improve employee retention by making a better effort to reward high-performing employees. Lack of recognition is one of the leading reasons employees leave their current positions. There are many simple ways to recognize and incentive employees.

• Verbal recognition – Providing verbal praise to your employees is a simple, effective way to affirm to your team that you appreciate them.
• Physical employee award – Rewarding top employees with beautiful acrylic awards is a long-lasting expression of the value you place on your high performers. Employee awards can provide a daily morale boost when they are displayed in plain sight, like on a wall or the employee’s desk.
• Small office perks – Reward the entire office with a small show of appreciation like free lunch, free coffee, or free snacks. The little things can lead to increased workplace satisfaction.
• Shout out employees in a public forum – Taking the time to post about employee successes and appreciate team members through social media platforms is a simple way to show your appreciation. If you’ve given them out acrylic awards, share photos to your followers.

Contact Us

By focusing on small changes and focusing on employee retentions strategies you can reduce your turnover and save money. Purchase your top performers acrylic awards for their hard work from Muniz. It’s a small price to pay for recognizing their hard work and keeping them engaged. We service many Fortune 500 companies from New York to Miami. Call us today.