Employee retention has always been a key factor of business, but in the current climate its more important than ever. The UK is currently suffering from a nationwide skills shortage with job vacancies at a high. Job openings in Britain are around 20% higher than their pre-pandemic levels.
A multitude of sectors are struggling to get the employees they need, so if your employee turnover is high, re-stabilising the roles may pose difficult.
Regardless of the current shortage, employee retention is vital to maintain a business, as the costs of recruitment are often much higher than employers expect. Statistics show that the average cost per hire is an estimated £14,895! If it turns out the person hired isn’t the right fit, then this can rise to an average of £18,500! This highlights how recruitment is a big spend for any company and how expensive hiring the wrong person can be. These costs can be avoided if you focus on retaining the employees you already have.
However, cost is not the only reason that employee retention is important, productivity is another major factor. An employee with a longer tenure is more productive than a new hire because they have had time to gain confidence with their role and are accustomed to the way the company works. A new starter will have to be trained and can take a significant time to become fluent with their role.
If you have any questions, contact one of our consultants for advice with employee retention.
Call us on 01935 411 191 or email email@example.com to speak to one of our consultants about any HR related topic. A member of our consultancy team will be available to help you with any HR, Recruitment or Training queries you may have.