Searching high and low for the perfect employee to fill a complicated role can be difficult. It stresses you out if you’re already short-staffed and in a rush to get more hands as quickly as possible.
Of course, it would be preferable not to worry about hiring at all. Retaining employees you already have can be a lot simpler than constantly hiring. And it can benefit your business too.
While you’re probably familiar with some of the benefits of employee retention, there are several hidden advantages of employee retention that you may not have considered.
If you’re ready to get motivated to kick your retention efforts into high gear and retain your top talent, keep reading and learn some of the lesser-known benefits of staff retention.
Why employee retention is important
Employee retention is important because it can improve the productivity of an organization.
Organizations with high employee retention profit from increased employee engagement, higher employee morale, more experienced employees, and lower employee turnover costs.
That’s why 91% of Human Resources leaders are concerned about employee turnover in the near future.
Besides the revenue, companies with a lower turnover rate can spend time on their employees, build a cohesive company culture, and achieve innovations that outperform their high-churn counterparts.
Employee retention’s effect extends beyond your annual revenue or quarterly performance reports — it improves each day for your workers, managers, and customers.
In short, it’s hard to overstate the importance of effective employee retention strategies as they can impact just about every aspect of your business, including revenue, service, and company culture.
1. More quality hires
Hiring typically increases when employees leave your company. So it should decrease as your retention goes up.
The hidden benefit of high retention is that you can allocate more resources to the time-consuming job of sourcing new hires. You can be more selective in finding candidates with relevant experience and perfect cultural fit instead of rushing to fill a vacancy.
The candidates you hire this way are more likely to stick around and better fit your organization, which further improves your retention rate.
Ultimately, more employees staying means more business growth and more new positions. You can focus your hiring efforts on adding to the team rather than replacing previous talent.
2. Better employee training
Hiring new employees takes up a significant portion of your company’s HR budget and time. It’s estimated that replacing an employee costs anywhere from 50% to 200% of their annual salary.
Retaining just one extra employee means thousands of dollars saved you can use in other areas.
One often-neglected management area is training, with 78% of workers saying they want more training. By saving on hiring, you can spend on training.
With more time for training, your employees will be happier, more skilled, and even more likely to stay with your organization.
3. Improved customer relationships
Most of your return customers and clients don’t think of your business as a logo or physical store. They think of the person with whom they interacted. Your employees are the face of your business, from frontline workers up to account managers.
Your customers rely on your employee’s knowledge of their needs and history with the company to deliver the highest level of service. So when an employee leaves, the relationships they built with your customer base leave with them.
A PWC report found that 80% of Americans think a knowledgeable staff is the most important element to customer satisfaction, along with speed and convenience. They also pay more for things when they experience a positive customer experience.
The benefits of employee retention reach beyond your current staff and bottom line and impact the customer experience. A high employee retention rate ultimately improves your clients’ and customers’ perception of your business.
4. Faster progress
While onboarding and formal training programs are essential for satisfied, efficient employees, these resources are hardly the only way employees learn on the job.
By retaining most of your employees, you get:
- Strong relationships between your employees that impact their performance
- Employees who possess in-depth knowledge in their fields
- Great mentors who have the technical skills and know little-known tricks in the field to help the newcomers
You benefit from the perks of high employee retention: Employees have a wealth of team members to turn to when they have a question or need advice. This turns your newest employees into your best employees.
Also, when turnover is low, you keep the work environment of cultural cohesion and the know-how of experienced employees. This results in less stress and high productivity.
Final thoughts: 4 hidden benefits of employee retention you should know
Why retain employees? The answer is clear.
The benefits of employee retention are wide-reaching for your entire organization. Employees, management, and customers all reap the benefits of employee retention.
Employees benefit from greater satisfaction, higher productivity, and better support on the job. Employers can enjoy greater profit and less uncertainty. And your customers can rely on consistently high-quality and personalized customer service.
These benefits are well worth the expense of managing incentives like healthcare, training, and work-life balance.
If you’re ready to improve your employee retention, an all-in-one employee communication tool like Blink can maximize your organization’s initiatives.