Employee Retention Consultant
We Implement Strategies to Keep Your Best Talent
Is employee retention holding back your organization's results? Are you looking for someone to help you reverse the trend and keep good people?
Meet Jessica D. Winder, an experienced HR executive, consultant, and entrepreneur. Over the years, she has helped organizations cut turnover by up to 25%.
Want Jessica to help you retain more of your best talent? Get in touch today for a free consultation.
Why Employee Retention Matters More Than Ever
In an increasingly competitive labor market, many companies are struggling with employee retention. This is why it’s essential for a business's success and competitiveness.
How Employee Retention Impacts Profitability & Growth
Experienced employees know a company inside out. They get the process, the culture, and what your customers need. Without their knowledge, experience, and connections, your business may fail to grow.
A team that stays together is much more beneficial for profitability and growth. Long-tenured teams collaborate more effectively because they’ve built trust. They also generate creative experience because they have built trust.
Holding on to your employees is also connected to customer satisfaction. Experienced employees offer a consistent service for your clients. They create and keep relationships, and know what they need more than new hires. Clients are always looking for stable relationships within a brand.
The High Cost of Turnover for Businesses
Reducing employee turnover lowers the cost of recruiting, onboarding, and training new employees. When an employee quits, it’s not cheap to replace them.
Employers often invest weeks and sometimes months to prepare their new hires. During this period, when the role is open and the new hire is in training, work piles up, and deadlines slip. Even the best new hire takes time to match the productivity of previous employees. This all eats into your business's margins.
According to Gallup's workplace report, replacing employees could cost up to double their yearly salary. This figure covers recruitment costs, advertising fees, orientation, and severance. Hiring new talent also has costs, including testing, interviewing, recruitment, and training.
The Link Between Retention, Morale & Productivity
Morale, employee retention, and productivity are all connected for employees. Gallup’s 2023 report found that highly engaged work teams have a 43% lower turnover than disengaged ones. When employees feel valued, supported, and connected to their work, they are less likely to look for work elsewhere.
Before officially leaving the company, employees with low morale will often “quiet quit.” This is when people show up but contribute very little to the job. Employees who lack creativity, energy, and patience may also affect the morale of others in the company.
According to Gallup, engaged employees are 18% more productive. Their companies enjoy a 23% higher profitability than businesses with low employee engagement.
Engagement research by Harvard Business Review shows that employees who have strong morale and are emotionally invested are more resilient under stress. The report also says they are absent less, and give better customer service. In fact, their research shows that those who are happier at work are 31% more productive and have 37% higher sales outcomes than those who aren’t.
Failing to keep employees can have a snowball effect on the rest of the team and the entire workforce. One resignation can trigger a drop in morale and overall productivity.
When a skilled employee quits, they force their workload onto others.
Now, the team has more work to do and more stress, which leads other employees to feel overworked. The loss of one employee could cause a decline in morale for the entire team.
When one member leaves a team, another will likely follow, amplifying the entire cycle. Multiple departures at a company can create distrust in leadership. This can impact earnings by lowering customers' relationship with a brand.
Gallup and Workhuman research shows that recognizing employees for their hard work makes them feel five times more connected to their company culture. They also feel four times more engaged, and are 44% more likely to thrive overall.
Burnout is one of the main reasons employees leave a company. Employees feeling burnt out at work are likely to take more days off. They also have strained workplace relationships and have lower job satisfaction overall.
Studies show that leaders need to devise a plan to create a culture of valuing employees. This will minimize burnout in a company.
Burnout also creates a snowball effect on a company. When one person feels burned out, it reduces their work output. This adds pressure to other team members who may also feel burned out.
If left unaddressed, burnout leads to a loss of interest and high turnover at a company. Investing time and money into creating a positive culture of recognition improves retention.
What an Employee Retention Consultant Does
Identifying the Root Causes of Turnover
Our specialist will help you identify what is causing the employee turnover. These services will teach you how to stop further turnover.
Our employee retention solution uses engagement surveys, exit interviews, stay interviews, and focus groups to help you better understand the inner workings. While a surface-level investigation may point to workload or pay, an employee retention specialist may find something else.
An employee retention service can reveal:
Gaps in Leadership. Lack of trust in management due to poor communication
Lack of Recognition. Employees may feel undervalued, underappreciated, and invisible to management.
Toxic Workplace Culture. Bad HR practices, workplace bullying, lack of inclusion and representation.
Lack of Career Growth. When employees feel there is no room for personal growth or career development.
Get Started with an Employee Retention Consultant
Contact us for a Free Consultation today.
If you want to improve employee retention and transform your organization today, get in touch with our team today.
We can help minimize turnover and improve employee satisfaction.
Using Data-Driven Insights to Improve Engagement
As employee retention consulting specialists, we use multiple data-driven insights to help improve engagement.
Survey Data. We use engagement surveys to understand employees' feelings about leadership, workload, and morale.
Performance Metrics. This data follows workplace productivity, employee satisfaction, and days missed. Performance metrics can highlight how low morale can affect things.
Human Resource Information Systems Reports. These HRIS reports can track demographics, hiring, promotions, and employee turnover patterns.
The type of key metrics we are looking for :
Voluntary vs. Involuntary Turnover: Voluntary employee turnover is when an employee leaves a position before the contract ends. Involuntary employee turnover happens when employees leave because they have been fired. High voluntary turnover often signals cultural, leadership, or morale issues.
Retention by Department or Manager: This is how we measure employee retention rates. We can also pinpoint what influenced them. We focus on the impact of specific managers and analyze the environment they create. We look at the level of support they offer and the opportunities available in their department.
Engagement Score Trends: Engagement score trends are heavily linked to employee retention. Higher engagement scores usually indicate better employee commitment and loyalty. Engagement is tracked through regular surveys and feedback. We also look at turnover and absenteeism.
This key data can help create solutions to improve employee retention. It can also help you understand weaknesses in your business. For example, the data can help improve morale, create clear career paths, retrain leaders, or better manage workload.
Tailoring Solutions to Your Industry & Workforce
Employee retention challenges do not come with a one-size-fits-all solution. What drives employee engagement and loyalty for one business will not for another. That is why we adapt our solutions to your industry and workforce.
Unlike generic HR advice, we are aware of the context of your industry. We understand the specific motivations of your workforce. For example, some of the details we have found over our years in the industry include:
Healthcare. Employee retention includes minimizing burnout due to work stress and long shifts. It also implements new strategies for managing patient loads and schedules.
Tech Startups. Keeping employees in the tech world depends more on career growth than other industries. Tech employees are even more motivated by learning new skills.
Retail and Hospitality. This industry is known for high employee turnover. Recognition programs, consistent scheduling, and strong management are key to minimizing turnover.
Meet Jessica D. Winder - Employee Retention Consultant
Meet Jessica D. Winder, an experienced HR leader. She has a proven track record in helping companies across a range of sectors to strengthen employee engagement and retention.
With years of expertise in healthcare, technology, and professional services, Jessica brings a broad perspective on the unique challenges faced across various industries.
Jessica's ability to bridge compliance with culture strategy sets her apart as an employee retention consultant. She uses her experience to help give businesses all the tools they need to build an environment where employees feel supported, valued, and motivated to stay.
With this approach, Jessica can help organizations improve employee retention. She also helps support sustainable growth, innovation, and long-term profitability.
Who is Jessica D. Winder
Jessica D. Winder is the Senior Vice President of People at CoLab Software. She is also the founder of Hidden Gem Career Coaching, a career coaching and HR consultancy. Through this consultancy, she is dedicated to helping individuals and organizations thrive.
Jessica holds a bachelor’s degree from Stephen F. Austin State University and a master’s degree from the University of Sydney, along with multiple advanced certifications, including:
Senior Professional in Human Resources (SPHR)
SHRM Senior Certified Professional (SHRM-SCP)
Trauma-Informed Workplace Certification
Employing Abilities at Work Certification
Jessica guides organizations using executive leadership experience, entrepreneurial insight, and specialized training. Her employee retention programs can create an inclusive, engaging, and sustainable workplace culture.
Broad Industry Experience
Jessica D. Winder brings her wealth of experience to various sectors. Her background includes fast-growing startups and established enterprises. This proves her ability to adapt her employee retention strategies to different company sizes, workforce dynamics, and organizational cultures.
Jessica’s versatility and experience across sectors help her quickly understand the context of any business and tailor engagement and talent retention solutions that work specifically for the business. She has experience across the following sectors:
Tech and Software
Retail
Biohazard Cleaning
Construction
Startups
Human Resources
Legal
Healthcare
Case Studies & Success Stories
Common Retention Challenges We Solve
Low Employee Engagement & Morale
Common causes of low employee engagement include personal issues or organizational problems, including:
Lack of goals
Lack of reward or advancement
Excessive workloads
Lack of flexibility
Unmanageable deadlines
Limited resources
Poor leadership
Micromanaging
We use effective employee retention methods to help improve your organization. These strategies include, but are not limited to:
Creating a positive and inclusive culture
Providing opportunities for career growth and development
Prioritizing work-life balance
Building stronger employee-manager relationships
Recognizing and rewarding employees
Matching work with employee purpose and values
Offering access to well-being support
Letting people give continuous, honest feedback
We also understand that low morale is more than an unhappy workplace. It can also include employee burnout. Overworked and underappreciated team members can experience burnout.
According to reports, people who have experienced burnout in the past year:
Have 36% lower morale
Have 30% less engagement
Make 27% more mistakes
Have a 25% higher chance of leaving the company
Ineffective Onboarding and Training
One of the factors contributing to high turnover rates is poor employee onboarding. According to PayChex, up to 80% of new employees who feel undertrained plan to leave the workforce. This is compared to only 7% who feel trained enough for their role.
Ineffective onboarding and training can cause:
Disengagement. Poor onboarding can leave new hires feeling disconnected and disengaged.
Unclear Expectations. When employees are not given clear instructions of their roles and responsibilities, they become uninterested.
Missed Development Opportunities. Poor training can make employees feel like they are missing out on important development opportunities. The lack of professional growth is one of the leading reasons for employee turnover.
Lack of Value. It is key that a business communicates its values and culture during onboarding. This helps employees feel like they fit in and are working towards the same goals.
A structured onboarding program can enhance the onboarding experience for new employees. Here are some onboarding experiences that can help welcome new hires and keep them.
Orientation Sessions. This session style is a fantastic way to train employees on policies, cultures, and procedures. The session also gives people a safe space to ask questions.
Pre-boarding. This includes sending paperwork and explaining company culture before their first day. This will make an employee feel valued and can decrease first-day nerves.
Mentorship Program. Pairing new employees with experienced mentors is good for all involved. It allows the new hire to ask questions and enjoy support as they navigate the role. It also shows that long-term hires their experience is valued within the company.
Provide Development Opportunities. Offer continuous learning opportunities like workshops, online resources, and courses.
Personalization. Recognize that everyone is unique and edit the onboarding and training to their job, needs and goals.
Lack of Career Growth & Development Opportunities
A 2023 Retention Report shows that a lack of career development makes people to leave their jobs.
This isn’t a new phenomenon. According to data, this has been a popular reason for leaving for over ten years. It increased by 17% from 2013 to 2020.
A 2022 survey from McKinsey says two-fifths of people are unhappy at work. 41% of Americans said they resigned due to the lack of career opportunities.
Cultural Misalignment and Poor Manager Relationships
Another key factor in employee turnover is unhappiness with management. Managers' behavior has a big effect on employees. They affect job satisfaction, work behavior, and the likelihood of staying with the company.
A UK-based survey from the Chartered Management Institute (CMI) reveals how manager/employee relationships can damage a company. This research shows that one in three people has left a job due to a negative work culture. Half of employees with bad managers plan to quit within the next year.
This dissatisfaction may be due to the lack of management training. 82% of workers enter management positions without any formal training. Research also shows that managers with formal training are more likely to report concerns about wrongdoing than those without.
Here are some facts to prove how much negative impact poor managers have.
One in four people in the UK workforce are in managerial roles.
Only 27% describe their manager as highly effective.
50% of the unhappy people plan to leave their company in the next year.
34% feel motivated to do a good job
Refine Labs Case Study
At Refine Labs, Jessica Winder implemented a leadership development program that increased internal promotions by 40%. She also introduced a minimum salary, which helped cut turnover by 25%.
Here are the techniques she used and the tasks she undertook to help this happen.
Compensation & Benefits Gaps
Gallup researchers asked employees leaving a company what the managers could have done better. The most common response involved compensation and benefits.
30% of those asked the open question believed they would have stayed in a business if compensation were better. This ranks higher than relationships with managers, career development, and workload concerns.
Compensation benchmarking has never been more important in helping organizations keep talent. It involves comparing your pay structure to that of other organizations in your industry and area.
An organization can offer three different types of compensation to employees. Each model should be tailored to each employee.
Direct Compensation. A fair salary is important. It makes people feel appropriately compensated and appreciated. Monetary bonuses for performance, loyalty, and goals can also make employees feel rewarded.
Indirect Compensation & Benefits. Wellness and health benefits, like vacation and sick days, can promote a healthy work-life balance. Professional developments, like mentoring programs and training, can help employees feel like they can grow in a company. Wellness programs, like health programs and insurance, support employee well-being and can minimize burnout.
Perks and Recognition. To create a positive work environment, make an employee feel acknowledged and appreciated. Employee discounts and company perks can also create a sense of belonging.
Our Employee Retention Consulting Services
Retention Audits & Engagement Surveys
We offer a retention audit to help review your business. This is an in-depth review and assessment of an organization's documents and data. This review ensures a company complies with legal, operational, and industry standards.
A retention audit involves:
Storage and Security: Evaluate the physical and electronic storage of documents, including security measures and backup routines.
Disposal Procedures: Checking that secure measures are in place when destroying and permanently deleting data.
Audit Trail: This makes sure that all data management activities are clearly timestamped to ensure accountability.
Our employee retention solutions also offer an effective engagement survey. This clearly defines a company’s goals. We can create actionable data that leads to real improvements in the employee experience.
This is how we create an engagement survey to benefit your business:
Define Clear Goals: Identify your business goals. What do you want to understand? How can you link the survey results to business outcomes?
Involve Stakeholders and Leaders: Use opinions from key stakeholders to understand what they want from your employees.
Structure the Survey: Group questions around themes that reflect your organization's needs. Use clear, easy-to-understand phrases and include a mix of closed- and open-ended questions.
Prioritize Confidentiality and Anonymity: Assure employees that their responses will remain anonymous to encourage honesty. Let them know that the feedback will be used to improve, not punish employees.
Retention audits and engagement surveys provide actionable data that, when acted upon, can improve turnover, engagement, and general morale. For example, there is a major leadership and communication gap if data shows turnover was higher under those managers. This could help businesses understand that targeted training is needed for managers.
Onboarding Process Optimization
Surveys show that 90% of employees decide if they want to stay at a company in the first six months. As much as 22% of employee turnover happens in the first 45 days of employment. This is why onboarding is so important.
So how can you effectively onboard your new hire and keep them in the role for longer? An essential part is how you set up your new employee. Ensure your new hire feels prepared for the first day and has all the tools needed to start work. Show your new hire that they are valued and that your business is organized before they sit at their desk.
Once they arrive, give them all the access and information they need. It’s also important to know that not only do you need to grant access to shared drives. You also need to explain where they can find what they need and any company-specific conventions. They may also need training to use in-house messaging services like Slack or Teams.
Don’t forget the importance of social integration. Help introduce new employee to their colleagues to help them feel part of the team. Let them know about team events and activities, so they can start building connections.
There are some easy ways to measure how well your ongoing process is going:
Time-to-Productivity: Use this to measure how long a new hire can get up to speed and contribute to the company. Set up key performance indicators for the position and measure how long it takes for the employee to reach them.
Retention Rates: Examine turnover rates and track them to spot trends. Are there any common themes among employees quitting? If you lose employees within the first 90 days, conduct in-depth exit interviews to find out why.
New-Hire Surveys: Talk to new hires during their first year of employment to learn about onboarding. If they have a mentor, interview them to understand what works about the process.
Informal Feedback: Smaller companies often put together small focus groups or one-on-ones with new hires. Open-ended questions can help you better understand the pros and cons of onboarding.
DEI Initiatives to Foster Belonging
Other factors that create high turnover are a toxic work culture, lack of opportunities, and poor work-life balance. Employee satisfaction is closely connected to employee experience. One way an organization can create a positive employee experience is through a commitment to diversity, equity, and inclusion (DEI) in the workplace.
Research has shown that 78% of the workforce thinks it’s important to work for an organization that prioritizes diversity and inclusion. DEI affects employee retention by creating a positive workplace that welcomes all employees.
Diverse team members can bring in different perspectives that improve creativity and problem-solving. A lack of diversity can limit growth and cause stagnation. This can cause a domino effect within a workforce. This effect leads to disengagement, job dissatisfaction, and high turnover.
Our diversity recruiting isn’t about checking boxes, it’s about building a stronger talent pool. It is about looking at a diverse talent pool to hire the best candidates.
Here are some strategies you can use in DEI:
Through Advertising. Create more inclusive job advertisements using neutral language, sensitive word choices, and avoiding corporate speak.
Blind Application. Remove the bias with blind application screenings. For example, women musicians in the top U.S. orchestras rose from 6% to over 21% by 1993 after they started blind auditions.
Offer Accommodations. When you reach out to candidates, ask if they need any accommodations, such as ramp access or large print text.
Make Yourself Known. Go where the diverse candidates are. Actively seek out online spaces where diverse talent spends time.
Ask for Referrals, Another way to find skilled and diverse employees is through networking. Try introducing an employee referral program focused on diversity. Especially if you have already created an underrepresented demographic in your organization.
Use Internships. Use an internship to target diverse talent, hire diversity, and create future opportunities for graduates.
The World Economic Forum lists lots of DEI success stories. For example, Heineken developed a Women in Sales program to improve the representation of female managers. As a result, the representation of women senior managers in the sales function grew from 9% in 2020 to 19% in 2022.
Stay Interviews & Pulse Surveys
Stay and exit interviews are important for employee retention. They can help you understand why people leave. Stay interviews allow companies to improve employee retention by collecting feedback.
It also allows you to deal with concerns before people leave the business. They differ from exit interviews, which happen after an employee leaves a company.
Our stay interviews help you work out why an employee stays at your company. It helps you know what the business could do to improve their experience. Understanding an employee could help you overcome challenges in employee retention.
Pulse surveys are an increasingly popular way for businesses to collect employee feedback. Our pulse surveys are shorter and more frequent than others. They can be a fantastic tool for listening to employees and improving retention.
Checking in regularly with a team can help you see trends and see your improvements happen. According to Qualtrics, 77% of employees want to provide feedback more than once a year. A study from Great Place to Work shows that five times more UK employees want to stay at a company if they feel the management genuinely seeks and responds to feedback.
A common use of pulse surveys includes:
Engagement Pulse: Replacing the annual engagement survey with shorter pulse surveys can help organizations better measure employee engagement and core motivators.
Company Values: Track whether your organization meets the company values and initiatives.
Action Planning Tracking: Use the pulse survey to see how effective your action plans are and if the workplace believes they have a positive result.
Leadership Coaching & Manager Development
Mentorship is a great way to train new employees. It also gives power to experienced workers to share their knowledge. Jennifer Petrela at Mentorship Quebec, says more companies use mentorship during recruitment now. This is because younger workers appreciate the power of mentorship programs.
A mentoring program can help take the strain off your workers as it gives them a framework and guidance. It’s helpful to new and younger employees looking for career development. For tenured employees, becoming a mentor can show they are valued in the workforce.
A good leader builds trust, shows empathy, and maintains workplace integrity. Employees appreciate transparent leaders, admit mistakes, and support growth. Leaders creating a supportive and inclusive culture will have a lower turnover rate.
A leader committing to continuous development is a game-changer for employee retention. A strong focus on leadership development proves they are committed to their role and inspires their employees to do the same.
Coaching in the workplace can help improve people's work effectiveness and job satisfaction. These are popular key focus areas:
Performance and Productivity. Improving individual and team performance by setting clear goals. Also, identifying performance issues and skill gaps.
Skill & Competency Development. Enhancing interpersonal skills, developing leadership, improving strategic thinking, and building emotional intelligence.
Career & Personal Growth. Understanding the identity and goals of your employees. Supporting their development within the workplace and offering development tools.
Employee Engagement. Create a safe and supportive space to improve engagement.
Compensation Benchmarking & Benefits Strategy
Compensation benchmarking is when we evaluate and compare an organization’s benefits. We gather information on compensation and benefits from other companies in the same industry. This allows us to understand the sector better.
We then use this data to identify job market trends. This data helps your organization appeal to current and prospective employers. The compensation benchmarking data helps you calculate your company's average salary and benefits.
To perform an accurate compensation benchmarking process, we:
Define Goals & Scope: Set clear objectives and identify key roles. Are you trying to attract and hold on to talent? Do you want to improve satisfaction? Or are you looking to ensure pay equality?
Document Your Position: Create a clear list of job descriptions, responsibilities, and structures. Evaluate your existing pay structure and total compensation. Include benefits like retirement plans and time off.
Be Transparent: If you use the information to change compensation and benefits, be transparent. This helps build trust with employees and shows your commitment to fairness.
Compensation benchmarking isn’t just about pay rises. It’s also about finding benefits that appeal to employees. These benefits can include mental health days and mindfulness programs to minimize burnout. Compressed workweeks, job sharing, and personal development can make teams feel more valued.
Our Proven Employee Retention Strategy Framework
Step 1 - Assess: Gathering Employee Feedback & Data
Step 2 - Analyze: Pinpointing Key Retention Drivers
Step 3 - Implement: Action Plans for Lasting Change
Step 4 - Measure: Tracking Progress & ROI
Collecting employee feedback gives real-time insights into your team’s needs, challenges, and goals. Employees also value working for an organization that is open to feedback.
Some tools that we use to gather employee feedback and data include:
Employee feedback surveys
Pulse surveys
One-on-one meetings
HR data
Focus groups
Suggestion boxes
Exit and stay interviews
Anonymous feedback forms
Passive data collection
It is important to give employees the chance to give anonymous feedback. Anonymity creates a safe space for employees. They can share honest feedback without worrying about the effects. Plus, offering anonymous feedback increases participation.
A proactive employee retention program will help you hang onto the talent. Use our data to plan and reduce any factors that could cause a high employee turnover.
We recommend data segmentation. This is when you split data into smaller, manageable sections. These groups are created based on shared characteristics or behaviors. Segmenting data, like employee retention, is done to help make the results easier to analyze and understand.
To segment data effectively, you can follow these key steps:
Identify Objectives: Understand what you want to achieve with data segmentation.
Collect Data: Gather information from various sources, including surveys and focus groups.
Define Segments: Choose the criteria for your segments. Is it based on demographics, sector, leadership, or something else?
Analyze Segments: Look at each segment closely to fully understand the data. Then make an informed decision on the segments.
Implement Strategy: Use insights from the analysis to create custom strategies.
Data segmentation can help you identify the factors that pose a retention risk. This is the likelihood that an employee will leave an organization voluntarily or involuntarily. Understanding risk retention is crucial for companies wanting to create a positive workplace culture and hold onto top talent.
In 2017, Hilton Grand Vacations (HGV), was worried about their 42% turnover rate. The timeshare company analyzed the data and found that the turnover was due to a lack of job satisfaction, low engagement, and limited career advancement opportunities.
So, HGV conducted employee surveys to gather feedback and understand the areas for improvement. They then developed a sales training program, established a mentorship program, increased compensation, and implemented a recognition program.
As a result of these strategies, HGV minimized its turnover rate by 15% within the first year and 30% over two years. They also saved millions of dollars in turnover, saw improvements in employee engagement, and job satisfaction.
We turn findings into tailored strategies through simple steps.
First, identify the key research findings. Know the target and align it with the research goals. Next, seek actionable insights from the data. We separate useful data from non-useful data to drive growth and spark innovation.
For example, if poor leadership is an issue, managers should be given tools to improve. If you find inequalities or low pay satisfaction, set clear pay practices and create a reward program.
Also, remember that grassroots involvement is very important, but leadership support is essential for improvement. Leaders shape the culture. If they don’t change their behavior, they can’t expect their employees to do so.
Measurement is essential to ensure that business strategies deliver real results. A KPI ( Key Performance Indicator) is a measurable way to achieve business objectives. We track KPIs to measure progress, refine strategy, and deliver ROI.
Some KPIs definitions include:
Turnover rate
Engagement scores
Internal mobility rates
Compensation
Program initiatives.
With structured reporting, organizations can refine strategies and boost ROI. Monthly dashboards can allow for timely adjustments and quick insights. Quarterly reviews are better for higher-level KPIs. It allows an organization to understand turnover trends, promotional rates, and engagement scores.
Reporting cadence matters because it can lead to better planning. It also helps stakeholders know when to expect information. A regular reporting rhythm helps create consistent data, making identifying trends easier.
Benefits of Working with a Retention Consultant
Reduce Turnover Costs & Improve Stability
The financial costs of recruiting and training new employees can be a worry. Some studies state that every time a business replaces a salaried employee, it costs six to nine months of their average salary.
While employee turnover costs vary, it is obviously a concern for a business. For example, some reports state the average costs to replace an employee are:
One to two times an employee's yearly salary
$1,500 for an hourly worker
100% to 150% of an employee's annual salary for technical positions
Up to 213% of an employee's yearly salary for C-suite positions
Employee turnover can also affect your customer base and cause a loss in revenue. Service stability helps build customer satisfaction. This is because they value consistency and will use a service if they connect with an employee.
Improve Employer Brand & Talent Attraction
Employee retention is more than an HR metric. It directly shapes a company's perception. High retention suggests a healthy culture, long leadership, and work-life balance. Job seekers will see low employee retention as a sign of poor cultural or leadership problems.
A high turnover may discourage talent from applying to a company and damaging trust. Websites like Glassdoor, Indeed, and Comparably amplify these perceptions. Former employees can use this website to leave negative reviews, highlight issues like poor management, limited growth, and low pay.
A study by LinkedIn found that a strong brand can reduce cost-per-hire by up to 50%. The same study found organizations with strong reputations see a 28% increase in employee retention.
Build a More Engaged, Loyal Workforce
Employee absenteeism is a significant concern for many organizations. Employee engagement can reduce the likelihood of frequent absence. Gallup's research states that highly engaged workplaces have a 41% reduction in absenteeism.
This is because engaged employees are more motivated and committed to their job. After all, they feel a sense of purpose. High engagement is linked to job satisfaction. People who are satisfied with their workplace culture and workload are less likely to take unnecessary sick days or unplanned leave.
Employee loyalty doesn’t just strengthen retention. Loyalty also turns employees into brand advocates. Satisfied workers are more likely to speak positively about their workplace to peers, customers, and online.
Strengthen Your Leadership Pipeline
Effective succession planning ensures your business doesn't lose momentum when leaders leave. This is done by identifying high-potential employees and preparing them by passing on knowledge.
Leadership development programs give employees the tools to grow into management roles. The leadership pipeline shows that an organization is investing in career development.
LinkedIn’s data shows that employees promoted within three years of hire have a 70% retention rate. They already understand company culture, values, and processes, making the succession transition smoother.
Sometimes it’s necessary to bring in new skills by hiring externally. There is a larger talent pool to choose from. It also allows you to hire someone with the same skillset and can increase diversity.