There’s a high cost to employee turnover. Some studies estimate that the cost of replacing a salaried employee is six to nine months worth of salary in recruiting and training expenses. Other studies have found that cost to be even higher – up to two times an employee’s annual salary, particularly if it’s an executive level employee needing to be replaced. 

Despite these high costs, retention in the workplace remains a predicament for many businesses. And in some cases, the revolving door circulates quickly. 

Instead of constantly spending on recruiting and training, focus your efforts on retention.  Because the reality is that if you aren’t making your top employees happy, another company will be all too happy to steal them away. 

Provide regular feedback and guidance. Performance reviews, both formal and informal, are important so that employees understand their role and how they’re performing in it. If an employee feels confused by his or her duties and receives little to no communication – good or bad – from managers, he or she is more likely to feel disgruntled and begin searching for work elsewhere. 

Offer career development training.  You hired employees who are fully trained and certified but learning should never stagnate. Invest in helping your employees maintain their credentials and further their knowledge by offering workshops, seminars, training programs and other opportunities for learning. You benefit from the knowledge they gain from these programs and they see it as an investment in their professional development. 

Be flexible. The world works differently than it used to and flexible working conditions reigns supreme. If your business model allows it, consider offering flexible work schedules or the opportunity to work remotely.

Offer the right benefits. Rise above the competition by offering wellness benefits that go above and beyond standard health benefits. Wellness benefits resonate with employees because, for the most part, people want to work for a business that they feel cares about them – and they’re willing to put more effort into their work when they feel cared for. 

Despite your best efforts, the reality is that sometimes good employees leave. But if your employees feel valued and excited about working at your business – and they feel that they’re being fairly compensated – they will not want to go elsewhere. And they will continue to help your business thrive.

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