One way to ensure that your business thrives is to retain your best employees. This is even more important for startups and small businesses attempting to compete with larger companies. The large companies possess the bigger budgets and typically attract the top talent.
It is vital to avoid the negative impact that the regular voluntary turnover of employees has on your employee’s morale, productivity, and your company’s revenue. Keeping employees happy normally helps to achieve this. To recruit and train a new employee takes up a lot of staff time and costs plenty too.
Employee Turnover Costs
Various studies relating to the costs of employee turnover are available across the board. Certain studies, such as the SHRM study, suggest that it costs on average six to nine month’s salary to replace any salaried employee. If you take a manager that earns about $90,000 annually, it will cost your company between $50,000 and $60,000 to recruit and train a replacement. Other studies suggest that it could cost even more. The bottom-line remains though, which is to avoid frequent turnover of especially your skilled staff members, such as tech employees.
The Best Way to Deal with Loss of Skilled Employees – Retain Your Top Staff Members
Employees leave your company voluntary for various reasons, which typically include the following:
- They are usually unhappy about something, which could be the work environment, colleagues, remuneration package, and the lack of incentives and career advancement.
- Poor communication within the company.
- Management paying no attention to what is going on in the office.
- No monthly or quarterly feedback (regarding employee performances, for example) is given.
- Job responsibilities keep changing, which frustrate many employees.
To retain your top tech employees more effectively, you should follow these tips:
- Have a clear benchmark for the retention rate of employees
- Never guess, but instead utilize proven retention policies
- Do not assume that your employees are happy, and create an environment that involves high-feedback
- Competitive benefits program, such as traditional health plans, needs to be implemented
- Different benefits for different staff members, where the focus is on the expensive to replace, high value staff members, have to be provided
- Exit reviews need to be conducted
How Should You Respond When a Skilled, High-value Tech Employee Decides to Leave?
An exit interview will give you an excellent idea why he or she is leaving the company. Knowing that the employee decided to leave because he or she was lured away by a higher salary or better benefits elsewhere, or due to something like a disagreement with company policies, an unresolved dispute with the boss or a co-worker, for example, could assist you in making specific changes to ensure that you retain employees better.
Have a recovery plan ready that includes specific plans for future incidents regarding employees who decide to leave. Moreover, list your long- and short-term goals with reference to how you plan to recover from the loss, as well as what you plan to do to avoid similar future situations. Certain vital decisions need to be made, such as:
- Will you employ someone to take up the same role?
- Are you reorganizing the department?
- Divide the position into two posts or move it entirely to a new department?
Redistribute the position’s duties to other employees should you not find an adequate replacement immediately. Being prepared for an important employee leaving the company is crucial. Utilize a plan that could be used continually.