The Value of Retaining Employees

Companies are constantly looking for ways to improve both their bottom line and their functionality.  Maintaining a current workforce has several benefits that extend through many aspects of day to day operations.  Not only does it help improve morale within, but it is an excellent way to bring more money to the bottom line.  Below, let’s look at the many way retaining current employees can help build value within a company.

Save Money

Hiring and training new employees is expensive.  It can be pricey advertising for open positions on various job board forums.  In addition, the time for managers to spend interviewing potential new employees is costly.  Further, hours spent for training a new employee to get up to speed can be extremely costly, as some trainings can last for months.  Couple in the fact that some positions require offsite training, and suddenly there is a great deal of money invested into one new employee.  By maintaining current employees, companies are able to save money by not constantly going through the hiring and training process with new employees.

Grow as a Company

One clear benefit of retaining current employees is you are able to grow the company from within.  Current employees regularly understand practices and procedures, so they are the perfect people to help a company grow and develop.  One way to expedite corporate growth, while maintaining current employees, is to regularly conduct a stay interview.  During the process, a leader meets with employees in a structured setting to ask various questions regarding the company and work environment.  The responses to the questions from the stay interview often prompts dramatic growth and development from within, spurred on by the current employees.  Development from within saves money by developing new functionality and strategy internally, without having to hire external consultants.

Maintain Customers

While turnover may be happening completely internally, the customer base eventually will notice.  If a company is a customer facing corporation, customers will eventually notice they are constantly working with a new sales representative or liaison with the company.  This can cause frustration for the customers, but also may give the wrong impression about the company.  What is going on within that their employees continually leave?  Perhaps it will give clients the impression that it is not a good company.  Regular turnover can have a big impact on client retention.

Build Comradery

When a team of workers has been together for an extended period, a bond begins to form.  People become close friends with their coworkers, and the relationships can extend into their production.  Having trust and belief in one another can make a stronger team that works better, improves productivity, and is happier at work.  When a team constantly has turnover, it can be hard to develop this same level of trust.  Coworkers that are trusting in one another are better at working in tandem, solving problems together, and working as a team.