It hurts when good employees leave. Your business suffers from lost team productivity and higher employee turnover expenses when top talent departs. Breaking down the high costs of turnover, comprehending the reasons why your employees are departing, and learning how to stop them from doing so can help you retain your finest staff for as long as feasible.
The high cost of employee turnover
The average minimal cost of employee turnover in a German company, according this interesting article based on a study by Gunther Wolf, was 43,069 EUR. Furthermore, by keeping your personnel for a longer period of time, you not only reduce costs but also lessen the disruption caused by job transfers, the protracted onboarding process, and the integration of new hires into existing teams.
Top three reasons good employees are leaving
- Lack of engagement, career growth opportunities or learning opportunities
- Employees burn out
- Decrease in employee mental health
Fruit baskets, competitive pay and flexible work schedules are just a few strategies that businesses have used to lower employee turnover. These strategies have their tempting advantages, but in the end, employees are more likely to depart due to a lack of career advancement chances than because there weren't enough apples.
Company culture, atmosphere, and advancement opportunities are unmistakably defining components in the equation for employee retention and cost savings. Employee retention will be aided by a company that promotes productivity and performance while also supporting professional growth and mental health. For instance, in our company I was impressed how we have a mental health ambassador and in the onboarding learning path, new employees get shown multiple options of meditation apps, time tracker apps, mental health videos and ergonomic working and moving instructions to feel better not just mentally but also physically. Read this interesting article about how employees are a companies greatest asset.
"Train people well enough so they can leave.
Treat them well enough so they don’t want to."
Our advice on how to retain your employees
- Build employee developments paths
- Implement personalized career opportunities
- Encourage peer to peer relationships
- Increase of employee mental health
- Creating dynamic development goals and plans together with regular, measurable and tracked employee dialogues
Growify drives the growth of companies and their people through building a development system that involves everyone in the company – from managers to trainees. Practical, skill-oriented and on a strategic level.