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Are Your Employees Quitting?

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Are your best employees quitting? It’s important to find out why. While it may not be readily apparent, unexpected employee resignations costs companies a lot. Here are some of the highest and most damaging costs especially to small businesses:

  • Loss of sales / profit while employee is replaced
  • Recruitment fees
  • Loss of potential profit while training new employees
  • Possible legal expenses for allegations of discrimination or mistreatment raised by the parting employee
  • Productivity loss due to low morale of the other employees who have to pick up the work

What is the solution and how much does it cost to retain employees? While it is true that competitive salaries and benefits attract employees, it is equally true that most strategies to minimize turnover do not cost money. Here are some for your consideration:

  • Clear, frequent, face-to-face communication from the organization’s leader is essential to gain employee commitment and trust.
  • Everyone should know the company’s vision and goals, employment policies, job expectations and how performance will be rewarded.
  • In addition, conversations regarding employee poor performance should be held in a respectful way and in private; and praises for a job well done should be done in public.

These strategies require effort, purpose and consistency. Unexpected employee exits will not be completely eliminated but there are things business owners can do to minimize it and the expenses related to it.

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