How Top Employee Retention Techniques Boost Your ROI
Every business decision must make financial sense, whether it’s choosing the best courier service or developing new employee retention techniques. Even the human factors, like job satisfaction, factor into your profit margin. So, how exactly does employee retention impact your fiscal health? Is it really worth the investment? The short answers are: in every way and always. But that’s probably not enough to make a successful business case. So, let’s dive into the details. Below are 7 ways that an employee retention program will boost your ROI now and in the future.
7 Perks Of Implementing Employee Retention Techniques
1. Reduce New Hire Training Costs
You need to leave room in your budget for new hire training if you plan to expand your team. However, the right employee retention techniques can drastically reduce your onboarding L&D expenses since you don’t have to pay to train replacements. Thus, your new hire online training strategy is more about bringing fresh talent into your organization and maximizing their existing skills, rather than trying to fit them into the mold your previous employee left behind. The catch is that there’s no assurance they’ll reach the same level even if you invest in their ongoing development, since they may not have the necessary experience or professional background.
2. Improve Workplace Productivity
There are actually three ways that employee retention plans impact workplace productivity. Firstly, unhappy staffers are less likely to achieve their full potential and develop positive work habits. Secondly, employees who voluntarily exit leave a hole in their department. They’re not around to complete tasks or provide stellar customer service. This brings us to the final drawback, which is coworker productivity. The employees who remain with your organization have to pick up the slack. For example, they must fill in for the staffer who left last week. That means a heavier workload and less time to complete their own job duties.
3. Mitigate Compliance Risks
It may take a while to bring new hires into the fold, especially when it comes to compliance. There’s a sort of waiting period where they’re still acclimating, but that’s when there’s the highest risk of violations. It’s not that they’re inherent rule breakers. They’re simply unaware of the policies and procedures at this point. Retaining top talent helps mitigate risks because they’re past the learning curve. Experienced employees know all the rules and how they apply to their job. If you decide to expand your team, you need a higher ratio of experienced staffers for peer support.
4. Turn Employees Into Brand Advocates
Employees get into the groove after a while. They perform tasks with ease and overcome common challenges. But this familiarity also transforms them into brand advocates. Your values and corporate beliefs become ingrained and almost second nature. As a result, an employee retention plan improves your image and helps you expand into new markets since you have a solid team of staffers who know what you stand for and accurately reflect your brand. They can even step into the role of onboarding guide for new hires due to the fact that they know all your policies, messaging, and processes inside out.
5. Hit Sales Targets
One of the most direct ways that an employee retention program impacts your bottom line is sales. Highly-trained staffers know your product line and they’ve already perfected their pitch. But that doesn’t mean they stagnate. In fact, top talent is always looking for new online training opportunities to boost their sales stats. Not to mention, exiting employees leave a gap in your team. They’re no longer around to help customers, restock shelves, or pitch products, which dips into your profit margin. It also means longer wait times, impatient consumers, and missed sales opportunities.
6. Lower Recruiting Expenses
Finding the right person for the job is usually costly and time-consuming. First, you need to market to attract the ideal candidates. Then move on to interviewing and qualification. In some cases, the HR team has to set up multiple interviews to ensure that applicants meet all the criteria. Thus, employee recruiting techniques help you lower recruiting expenses because there are fewer vacancies to fill. Your staffers stay with the organization because they’re satisfied, and all their needs are met. Plus, they have opportunities to move up the corporate ladder and pursue their career goals.
7. Your Long-Term L&D Investment Pays Off
Every employee who joins your team is an investment. They enter with specific skills and talents. That’s their base. But then you put time and resources into their professional growth, whether it’s online courses, certification paths, or live events. If they leave your organization, that L&D investment goes with them. Furthermore, another company benefits from all the skills and talents they honed. As such, a successful employee retention strategy ensures that you get maximum returns from your staffers. You can also continue to cultivate their talents so that they contribute more to your business and play a more vital role even if they don’t intend on pursuing a management position.
The right employee retention techniques are often difficult to pin down because your remote workforce is so diverse. Everyone has unique personalities, goals, and career trajectories. For this reason, you should mix things up and offer different incentives schemes. It’s also wise to conduct a little TNA beforehand to evaluate their needs and expectations. Finally, an eLearning content provider can help you improve employee retention and maximize ROI. Especially if they already have proven techniques to reduce staffer turnover and keep your telecommuters content.
How do you retain top talent and reduce new hire training costs? Download our eBook Achieving High Employee Retention: Is Outsourcing The Best Solution For Your Business? for secrets to find the best outsourcing solution.