No company will tell you their goal is to only focus on finding new employees, but too often that’s exactly the case. A current team is neglected on all fronts leading to disgruntled feelings and a desire to leave. Maintaining the balance between recruitment and retention is essential to ensuring you always have exactly the team you need. Here are three crucial reasons to keep your focus on employee retention.
1. The hiring process costs both time and money
When you don’t invest in the team you have and they leave, you must dive back into the hiring process. Finding new employees takes a significant amount of time and resources to do the job properly. From assembling the interviewing team to filling the gaps in work while their gone, caring for an open position is a job unto itself.
By taking the time to focus on your current staff, you’re decreasing their desire to leave. They’ll feel valued and appreciated and want to keep working for a company they feel is dedicated to them.
2. Turnover is a snowball
Sometimes all it takes is one person to break the seal and start the procession. Employees can grumble for a while, but as soon as one makes the jumps and quits, it will inspire others to do the same. They’ll see how easy it is and potentially the success of their co-worker and decide they can do it, too. Plus, the right people leaving may bring down the culture and make it unbearable, causing others to leave.
Avoiding this snowball is simple if you care about the employees you have and don’t view them as being easily replaced.
3. Increased unemployment insurance rates
We’ve already established the cost that comes with hiring and training a new employee, but that’s not the only financial effect. Turnover plays a big part in your tax rate, meaning the higher your rates, the more you ended up paying each quarter.
The fund exists to support employees when they leave a company at no fault of their own and a higher turnover rate indicates more money is potentially needed to cover the cost of more employees leaving. Both your UI tax rate increases and actual money paid out in unemployment claims can decrease with a more retention-focused strategy.
Experience a higher level of control over your UI costs
Billions are overpaid every year in unemployment claims because companies don’t have the time and resources to monitor everything. If this is your situation, we have good news – with Unemployment Tracker, you can experience a higher level of control over UI and save money. Request a live demo today to learn more about our solutions and find the right fit for you!