S7 E22 Employee turnover costs you money. – Retention is the key with Jeremy Gray

Episode 22 Employee turnover costs you money. – Retention is the key “We cannot stop employees leaving unless we have a plan to them stay”. Hiring replacement employees is expensive. Recruitment costs Lost productivity Reduced institutional knowledge Stress on remaining employees Onboarding and training costs Loss of morale It’s expensive Built In reports the average costs to replace an employee in the US are: $1,500 for hourly employees 100 to 150% of an employee’s salary for technical positions Up to 213% of an employee’s salary for C-suite positions Why do employees leave? Robert Half cite the following reasons: Inadequate salary and benefits Feeling overworked and/or unsupported Limited opportunities for career advancement A need for better work-life balance Lack of recognition Boredom Unhappiness with management Concerns about the company’s direction or financial health Dissatisfaction with the company culture The desire to make a change This can be summed up – employees leave when they do not feel valued. Retention starts with recruitment: The interview stage is as much about them liking you as it is about you liking them. It’s also about sharing realistic expectations of what the role entails and having a mutual understanding of what both parties bring to the table. Consider the future: The candidate might be a perfect fit now but what about in two or five years’ time? You’re looking for loyalty and longevity to reduce the likelihood of the right person leaving sooner than you’d like. And ultimately, whether the individual fits your company culture and will work well with the rest of the team. Are they familiar with startup culture? After all, a startup is a very different beast to a large corp. The best person for the job on paper isn’t always the right person for the job. What one person may lack in experience, they make up for in aptitude and attitude. Instill a positive Company culture: Retention is about cultivating an environment where people can do their best work,” Nick Francis, CEO of Help Scout. A startup with great company culture will not only attract new talent but also help to retain talent. Fundamentally, positive company culture should: Align teams behind a clear mission Drive the business forward Set expectations for behavior, communication, and collaboration Promote work/life balance and positive wellbeing Acknowledge everyone’s contribution to the bigger picture Invest in training and development: As time passes and the new hire’s contribution increases, be sure to schedule regular catchups to see how they’re feeling, if they’re meeting objectives or if they need further support or training. Regular one-to-ones are also an opportunity to ask the employee for honest feedback regarding onboarding, training as well as general processes and workflows. Being a startup is that core processes can be improved as the company grows. You can set the culture for your company Financial rewards: As a start up you may not be able to match larger companies Employees can recognize potential income – stock options, incentive programs based on success, profit sharing. Tags: How to start a business; Achieve start up success, Employee recruitment, Employee Retention, Training, Company Culture, Cost Management, The successful entrepreneur, business common mistakes small business start-up; avoid these common mistakes of business, mistakes in business, IBGR.network, Jeremy Gray, Practical Solutions to Difficult Problems