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Employee retention is paramount to the success and growth of any organization. Employees who remain with an organization for an extended period become more experienced, possess deep knowledge of the company, and contribute significantly to its culture and productivity. Below are a few of my thoughts that highlight the importance of retention:
- Cost Saving: Managing or cutting costs is more critical than ever. Inflation and the rising cost of insurance and labor are putting a drag on NOI. Hiring and training a new employee can be substantially more expensive than retaining an existing one. Advertising, interviewing, screening, and onboarding costs can add up. Additionally, new employees might take time to reach the productivity level of an existing worker.
- Preservation of Company Knowledge: Long-standing employees hold vast amounts of institutional knowledge. When they leave, they take this invaluable knowledge with them, and it can be challenging for new hires to fill these knowledge gaps quickly. Putting math to this is nearly impossible, but the cost is high.
- Increased Productivity: Continuity is a significant factor in achieving consistent productivity. Employees with the company longer tend to understand the processes, tools, and culture, allowing them to work more efficiently. They also understand their fellow team members and how to work well with them.
- Enhanced Company Culture: Retention contributes to a strong company culture. Employees seeing their colleagues staying and growing with the organization fosters a sense of stability and belonging.