Is a high employee turn over rate hurting your business too?
Companies across the country are struggling to retain employees and the cost to replace them is hurting.Solutions to reduce employee turn over rate
We talk to business owners in various industries every day and we keep hearing the same thing lately. “We can’t find enough good people to hire and when we find good people they don’t stay long.”
Is your company feeling the effects of high employee turn over rate too? Then you know the frustration and the high cost of replacing good employees. It not only affects your revenue but it also affects productivity because other employees have to work harder to pick up the slack until you find a replacement. This puts more pressure on everybody and it can lower morale and productivity.
As a general rule of thumb, companies should aim for an employee turnover rate of 10 percent or less. Employee retention rates of 90 percent or better should be the goal.
What’s the solution to employee retention?
Here are a few key things you can do that can help attract and retain valued employees.
Employees should be trained and promoted
By investing in training your employees, you will increase their commitment and feel valued. In addition, seek out opportunities for them to get new experiences and take on more responsibility. Lack of career advancement opportunities is often the reason people leave their jobs.
Create a great work environment
In order to keep staff, it is important to have a positive workplace culture and a workforce that is engaged. Motivated employees are more likely to stay. Get feedback from your employees on what your business is doing well and what improvements they would like to see.
A good way to get honest feedback is to conduct anonymous surveys that are guaranteed to remain confidential.
Provide Incentives
There are so many creative ways you can provide recognition to your employees. Many choices will depend on the type of business you have but here are a few popular ones:
- Cash bonuses for perfect attendance
- Bring your pet to work
- Profit sharing
- Monthly staff barbecue or work happy hour
- Time off To volunteer
- Recognize and reward achievements
Provide Healthcare Benefits
This is a big one. More and more companies are finding that when they offer healthcare and dental plans, their employees are more motivated, feel appreciated and less likely to leave which will help them save money.
Large companies are required to provide Major Medical but for smaller companies, it’s just unaffordable. There are affordable options and they’re not expensive. Read on to find out just how inexpensive it can be.
The cost of employee turn over rate is high
According to study by CAP (Center for American Progress), the average cost to replace workers earning $50,000 annually is 20 percent of their annual salary. For employees with complex or special skills, the cost is much higher.
If we use this example and even reduce the employee replacement cost to 10% of a $50K salary, that is a $5,000 cost to your company.
Let’s spread that cost over a year and say the cost is $416 per month.
If you could retain an employee by providing them with a healthcare and dental plan for $92.50/mth* it’s an obvious win-win for your company and your valuable employee.
We understand the problem that many companies are facing and we put together comprehensive, flexible bundles that you can offer your employees for only $92.50 per month*.
You can even offer these incentives to attract better part time, seasonal, contracted workers.
We make it very easy so you can start offering these valuable healthcare benefits to your employees as soon as tomorrow.
To find out more about how we can help, give Greg Hellmich a call at (608) 420-2822 or book a call when it’s convenient for you.
Greg Hellmich* Cost example based on a 40 year old male. Rates vary by age and location.