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The Importance of Staff Retention and How to Improve It?

Join the Esme team as we find out the benefits of staff retention and how you can improve it in your business.
The Importance of Staff Retention and How to Improve It?

The retention of hard-working, motivated employees can be very important for the success of your company. If you have high staff turnover, there may be negative effects on your company. So what are the benefits of staff retention and how can it be improved?

Increased expenses

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Recruiting quality staff can be difficult, expensive and time-consuming. If you choose to go through a recruiter, they often require a commission of between 10% and 15% of the salary you are offering. Even if you choose not to go through a recruiter and instead attend events or advertise the position online, you could still be hit with a hefty price tag. Therefore, the more you are able to retain your existing staff, the less you’ll have to pay on the recruitment process.

Efficient staff improves morale

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Over long periods of time, staff morale can be affected by many things like unsuccessful hires in the company. For example, regular bad hires and high staff turnover can interrupt the workplace environment and even increase workloads for the remaining staff. Additionally, staff may begin to question or doubt the hiring or management team if the company is not running so smoothly. Staff can also experience higher workloads as a result of someone leaving. Taking extra care and attention when getting to know job candidates can ensure you hire the right people and benefit company morale in the long run. Conducting second rounds of interviews or even having an informal conversation with candidates could give you a good indication of how they‘ll fit in. Providing new employees with a sufficient training programme can also help reduce unsuccessful hires and ensure they feel supported throughout their time with you.

Create dedicated company experts

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Well-established employees can provide significant value to your company. When an employee has been working for your company for a long time, they have a strong, dedicated knowledge of the business. As well as this, longer serving employees are more likely to have built relationships with customers, encouraging them to return. In order to increase dedicated company experts in your business, you might encourage more opportunities for advancement or regular salary increases so employees remain loyal.

Improve your customer’s experience

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Both staff and customers benefit from long-term employees. By having lots of dedicated company experts within your business, it could improve the customer’s experience. If a customer can rely on your staff to go above and beyond for their required service, they may be more likely to return and speak highly of the company.

Reduced training time

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It takes time, money and lots of effort to train staff to perform to their best ability. Senior members of staff may have to take time out of their day to train and encourage new team members, so by keeping your staff turnover rates low, they can invest their time in other areas of the business. In order to improve staff retention rates, you might consider an employee retention strategy. This involves investing in your employee’s overall work experience. By finding out what your employee’s like and dislike about their roles, you can gain insight into how to improve the workplace for everyone. An easy way to do this is to start a suggestions box or have a monthly chat with your staff to find out ways you can improve their working environment.

How could Esme help?

If you’re considering getting a business loan, Esme could help. We provide unsecured loans to businesses from £10,000* to £250,000 over a one to five year repayment period. Just fill out our 10 minute application form, or get an instant quote.

*From £25,500 for sole traders