Employee Retention and New Hire Complications – How to Avoid Negative Downfalls

Have you ever worked in an environment that had a noticeably high turnover rate? When I was younger and working in retail, I noticed the store I was working for had an excessive amount of turnover activity. I would regularly meet new hires and help train them, get to know them, and eventually look forward to interacting with them at work every day. Unfortunately, the time would always come where I was told they gave their two-week notice, and just like that, the store had to look for yet another new associate. I remember feeling so disappointed because I no longer had that bond to share with them while at work. Strangely enough, this affected my level of motivation and productivity as I’m sure it does for many.

When the pandemic hit, it forced many companies to address necessary but unpleasant layoffs. Fast forward to the present and businesses are slowly working toward getting back to normal. With increased activity comes the need for new talent. In many cases, companies are realizing that their staffing needs prior to layoffs have shifted. To remain competitive and relevant, they must adapt to how the world economy is evolving.

With recruitment becoming more challenging, many companies are reaching out to previous employees — but do they have the necessary new skills? They are also faced with the reality that many people have grown accustomed to being at home, with unemployment benefits offering more appeal than returning to work. People aren’t necessarily jumping at the opportunity to return to the workforce after having enjoyed the flexibility they’ve had with their families. This has become the new reality employers must address and overcome. The workforce landscape is changing, and people don’t want to give up flexible schedules just to be tied to a desk again.

In order to retain staff, companies need to consider accommodating employees due to the leverage employees now hold. Offering a flexible work schedule and/or a remote work setting is a great way to incentivize potential employees, existing employees, and previous employees. Implementing a hybrid work environment and flexible schedules helps people maintain their desired work-life balance while supporting employer objectives.

Visit our blog about the importance of implementing a hybrid work environment and how Brandit can help you.

As employers navigate these challenges, it’s important to consider new and creative ways of retaining existing employees. If done properly, it saves resources and supports the bottom line. Let’s take a look at the kinds of costs and complications high turnover can cause:

Recruiting Costs: Advertising costs and time spent interviewing, screening, and hiring.

Onboarding Costs: Onboarding new personnel requires training and extensive time management.

Lost Productivity: It often takes one to two years for new employees to reach the productivity level of existing employees.

Lost Engagement: Existing employees witness high turnover and lose a sense of productivity.

Customer Service and Errors: New employees need more time to complete tasks and lack effective problem-solving experience.

Retaining Happy and Loyal Customers: Unhappy customers can lead to lost customers. It is harder to find new customers than retain existing ones.

Training Costs: Replacing a salaried employee typically costs 6–9 months of their salary.

Cultural Impact: When an employee leaves, others wonder why, which can disrupt a healthy work environment.

There are other ways to retain employees in addition to offering hybrid work-life balance. You need to listen to them, understand their challenges, and address their well-being. Focus on developing your staff and their knowledge so they feel valued. Happy employees create happy customers.

Try a phased approach to implementing a hybrid work environment. To build loyalty, consider offering better benefits as incentives. Recognizing that not everyone has the same needs shows your employees that you truly care. These are just a few ways employers can avoid turnover costs and staffing issues.

Another important — yet often overlooked — element is providing a healthy and inspiring workspace. Have you ever had a messy desk and found it hard to focus until you organized it? The same concept applies to employee environments.

Visit our Environmental Branding page to learn more about how to take advantage of these opportunities.

Brandit has all the tools and expertise to help you implement best practices to avoid negative setbacks in recruiting and turnover. Call us today so we can learn more about your company and show you how we can help — we look forward to working with you!