Does it make more financial sense for your business to recruit new employees or retain the valuable ones you already have? And which tools work best for encouraging employee retention? Picture this: you manage a group of web designers. One of your top designers and best employees approaches you to say she’s been offered an enticing position with a competitor. WHAT DO YOU DO? One option could be to let her go. While it’s been great having her skills on the team, there’s a lot of other web designers looking for work. You might even be able to find a recent college grad to do the job for less pay. Alternatively, you can do everything in your power to keep her with the company. She’s a high performer, knows the ropes and it’d be a shame for her to leave. If you chose the second option, you’re right. Retaining employees is the most cost-effective option and ensures that companies don’t lose out on productivity and can maintain employee morale. In 2015, research group EY set out to find the answer. They surveyed approximately 9,700 full-time employees aged 18-67 to understand who quits and why. Their population was diverse and included individuals spread across eight countries and four continents, but the primary reason for leaving a position remained the same: minimal wage growth.
Recruit vs. Retain The real cost of hiring and turnover
