Retain for Business Gain

February 21, 2019
Posted in Resources
February 21, 2019 GraemeH

A great workforce can be the deciding factor in the success of any business, but never more so in the Support Services sector. As such, one of the most important challenges for managers is recruiting the best people for your organisation. But that’s only the start. To remain competitive, retaining your workforce is vital. 

Every organisation has its own rate of employee turnover and it tends to vary drastically depending on the industry, Cleanlink estimates that the cleaning industry faces an extremely high turnover rate averaging at 75 % and reaching as high as 400%.

Staff turnover has a serious impact on a business. Losing a vital resource from a busy team, when an employee leaves it costs the organisation time, resources and money to cover that absence; then further time, costs and resources to source, employ and on-board a replacement. A report by Oxford Economics estimates the average cost of replacing a departing salaried employee is at £30,614, and whilst hourly workers may not attract the same costs Innovise’s own calculations show this to be in the low hundreds of pounds per employee. Costs vary customer by customer but the calculators are available to demonstrate this to any service provider who is interested.

For front line, managerial teams and the executive, changing jobs and career paths is part of life and employee turnover is something that every business with workers experiences. Investing in improving employee retention is a positive move, both for the organisation and in terms of the employee experience. Ensuring that your employees are looked-after, managed effectively and are properly integrated within the company’s culture, vision and mission, will all work towards keeping your staff turn-over as low as possible. Taking a single employee as an example, retaining rather than losing them, will provide benefits in the form of:  

  • Lower Costs

As a position becomes vacant the risk to consistent service delivery rises – so the pressure is on to find and replace the lost employee with another. As we know, recruiting, selecting and training new workers costs time, money and effort so taking measures to retain employees can lead to substantial savings.

  • Improved Efficiency

Each time a person leaves the organisation, it has a knock-on effect with other areas of the business. A missing team member can equate to slower production, decreased service delivery and a fall in moral with remaining colleagues. Improving employee retention can by-pass these problems.

  • Sustain Competitive Edge

More often than not, your staff are the face of your organisation and it is their expertise in the service that they deliver that builds business reputation. Gained through learning the ways of your organisation, the expertise of your employees enables you to compete favourably and gain competitive advantage in your industry sector. Ensuring that you keep hold of your employees, is key to ensuring that the reputation of your business remains positive.  

The investment into and implementation of technology can help you proactively address the needs of, and then keep your workforce happy in their jobs. Simultaneously taking care of the interests of each employee, whilst enabling your business to increase its efficiency, reduce costs and remain compliant, software solutions specifically designed to manage large and/or dispersed workforces are key to retaining staff. For example:

Workforce Management Software:

Too often client organisations still think this is achievable with ink, triple copy and manual process. The days of paper & pen and indeed excel spreadsheets to plan and prepare, as well as operate a contract are long gone. If you are still using these methods you are also probably failing to grow market share and/or improve margin. You’re probably losing staff too. However, you probably want your business to retain staff (and contracts), so you need to be making the switch-up now. Capable of doing a wide rage of tasks to keep your service delivery on track and to standard, Workforce Management Software also provides your employees with the information and flexibility they need to plan and work around other commitments that they may have. Investing in workforce management software will not only streamline processes making your business more effective but it will also encourage your workforce to remain loyal to you.

Recruitment Software:

Enabling you to find and then recruit the people best suited (and legally applicable) for a job, investing in software solutions to aid the recruitment process will generate a strong team of people that have been correctly managed throughout the on-boarding process. Integrating them with company culture right from the very start of employment with you, your employees will feel a valuable part of the ‘machine’ that is your business. Looking after the interests of your workforce, your workforce will ultimately look after you.

Considering all the drawbacks that workforce turn-over presents to a business, you might be surprised to learn that some types, or amount of turnover can be quite positive. For example, take the movement of people within the business from one function to another; This internal turnover is good in that you are retaining your trained staff and keeping them satisfied, by best utilising their skills in another area.

Ultimately, no one really wants to lose anyone from a business that has training, time and money invested into them. However, people will move on no matter what you do. In cases like this, the key is to use the situation as an opportunity to review and improve management and recruitment processes and policies to aid the ongoing development of a business.

If you recognise these problems within your business, contact Innovise to see how we can help you address these gaps.

 

REFERENCES:

www.instantoffices.com/blog

www.oxfordeconomics.com

www.forbes.com

www.thebalancecareers.com

www.thyblackman.com

www.thehrdirector.com

www.cleanlink.com/cp/article/Turnover–6327