Employees leaving your organization, whether by their choice or yours, costs your company thousands of dollars each year, through impacts to productivity, morale, workflow and valued customers,  Reducing turnover costs is an area of focus for companies as they come to realize that the effects go well beyond just making another hire.

Quality employees are the determining factor in the success or failure of any business, so taking care of employees to reduce turnover and saving your company money should be a key priority.  The foundation of this priority for all companies is to “hire the right people for the right role”, pay employees appropriately and ensure you have a positive environment to mentor and develop qualified empoyees.

Every employee that chooses to leave an organization will take valuable knowledge with them.  In certain circumstances turnover may be the only solution, parting with ineffective employees can be positive and create a more efficient environment.  Keeping top performers on board is beneficial, consider developing incentives that will enable you to be engaged with your top performers.  Incentives don’t always need to affect your bottom line.

Preventing valuable employees from departing can be mitigated by increased communication, training/development programs, initiating meetings to discuss opportunities for advancement and growth, creating an open door policy and addressing employee concerns promptly when they arise.

Recruiting a new full time employee takes anywhere from six weeks to one and half years depending on the position.  The overall time and costs associated with replacing and training new talent can present some drastic consequences for any company.

According to a Robert Half Agency survey, there are five main reason why capable employees typically leave companies:

1.  Limited Advancement Opportunities

2.  Unhappy with Management

3.  Lack of Recognition

4.  Inadequate Salary & Benefits

5.  Bored with Job

An organization that develops a stong internal culture that; values, trusts, respects, supports, encourages open communication, establishes clear expectations and challenges employees to strive to achieve, rewards and recognizes the employees contributions will benefit immensely through reduced turnover and turnover costs.  Creating a healthy environment within allows organizations to attract top performers and retain top performers.