Why is Employee Retention Important?
Employee Retention saves you money
In short, employee retention saves your company money from hiring new employees who are slow, make mistakes, affect the consumer experience and take time to onboard. Your hiring budget could be greatly reduced by retaining the employees you have, allowing you to spend less on advertising, hiring, training, and onboarding.
For example Employee-A has been with your company for 2 years, knows the importance of customer experience and was hired on at their original base rate, plus benefits, bonuses and raises, costing your company 75K. Employee-B has just started, she can't yet cover for an employee who is taking a personal day, she is still training and onboarding and has no idea the effect on the customer experience that her actions or lack of actions will have on your loyal consumers. One bad apple CAN spoil the whole bunch. Customers talk, Yelp, Google, blog, and post about their experiences even if you are not B2C. B2B customers have a greater potential for more financial impact as the returns from satisfied consumers for your product are higher. For Employee-B you hired them on at 65K which would seem like a savings until you add in the benefits, training, onboarding and potential customer dissatisfaction which cost your sales representative an account. How much more has Employee-B cost your company now?