Ask Away Blog: What Employee Retention Says About A Business

What Employee Retention Says About A Business

Friday, May 6, 2022

 

Small business owners understand the financial importance of attracting and keeping talent in-house. Indeed, recruitment costs can be considerably burdening for small businesses. Therefore, many can't afford to let go of their talent. Yet, attracting and keeping talent is no easy task. Employers must be able to make their business attractive and develop their brands to convince candidates to apply for a position. But more importantly, employers must also understand how to establish a business culture that will keep people engaged and motivated. As you would expect, it is easier said than done. The average annual turnover rate in the US is over 57%, including dismissals, retirement, and end of contracts. Voluntary turnover rate is approximately 25%, which means that 1 in 4 employees will quit their positions.

On the other hand, businesses that achieve a high retention rate, and therefore lose under 25% of staff are rare and commendable. Here is what high employee retention rates mean in the market:

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It boosts credibility for customers by showing the faith employees have in the brand

People stay with a business because they share its values and appreciate its culture. So, the first thing you need to check when dealing with a new company is how quickly staff changes. For instance, a business model such as Diamonds Direct provides a unique customer experience through highly trained, long-tenure employees. It is no surprise that Diamonds Direct reviews are positive. Employees stay long enough to build reliable expertise and support customers through their journeys. A long-lasting team shows that employees trust the brand's quality and are more likely to service customers with care.

It increases expertise by ensuring knowledge and experience can be shared

When talent leaves, knowledge, and expertise leave with them. However, when employees stay, the overall experience available to customers grows. Indeed, employees perform roles for longer within the same industry, which means they can develop their knowledge. They likely stay in touch with the latest market evolutions and innovations, ensuring the services they deliver are also up-to-date with the current trends and expectations. Finally, senior employees are present to train and mentor new employees, ensuring that the pool of knowledge continues to grow.

It isn't uncommon for companies with low turnover rates to receive business awards for their achievements and their customer services.

It improved employees' experience by turning the business into a family

Employees are people who can face difficult situations, such as illness, stress, or family issues. Yet, when employees have been working together for a long time, they are more likely to support each other through hardships, even outside of the workplace. Places with high employee retention also tend to record lower stress levels. Teams are willing to help one of their own through difficulties.

As a result, comparatively, businesses with a high employee retention rate tend to also record better mental health results. People feel emotionally supported by their peers. Cases of discrimination, bullying, and conflict in the workplace are less likely to occur in such environments.

In conclusion, high employee retention rates can have long-term benefits not only for your customers, but also for your business and your employees. Essentially, employee retention reflects the desire to stay with the same business, which helps create a positive, knowledgeable, reputable, and trustworthy company.




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