It’s a simple fact: organizations that don’t do a good job of retaining their employees lose out. They lose time, they lose productivity, and they lose money.
Now, it is true that the turnover rate in some industries is intrinsically higher than in others. For example, the turnover rate in the service industry, particularly fast food, is historically and notoriously high.
Turnover is defined as the percentage of the workforce an employer loses in a year. According to The Economist, the turnover rate is well over 100% in the fast food industry. That means the typical fast food chain loses at least as many employees as it hires every year. You can imagine what would happen to the financial bottom line of a typical chain if it improved its turnover rate to 50% or even 75%.
However, is there a difference between the turnover rate in blue-collar industries and the turnover rate in white-collar industries? Conventional wisdom would dictate that the rate is higher in blue-collar industries. Below is a description from Chron.com:
High turnover in working-class blue-collar industries typically occurs when employees feel under-valued, overworked, and under-appreciated. Often, workers of hourly labor jobs find their roles to be unfulfilling to a point where work becomes tedious and dull, which encourages them to seek other opportunities elsewhere. If left unchecked, high turnover can significantly and negatively impact a small business operating budget.
Here’s the most important thing to remember about retention:
The retention of employees starts with the onboarding process, and the onboarding process starts the moment the person agrees to work for your organization.
So if you want to retain more employees, then you must onboard those employees in a comprehensive, engaging, and satisfactory fashion. We’ve touched upon the subject of onboarding before in this blog with a post titled “8 Reasons Why an Onboarding Program is Worthwhile.”
To review, those eight reasons are as follows:
- Build rapport between the new employee and their co-workers
- Build an optimistic attitude for the new employee towards the company
- Reduce anxiety for the new employee
- Build motivation and job satisfaction
- Decrease the learning curve
- Reduce misunderstandings between all parties involved
- Give the new employee a greater sense of purpose
- Make the employee feel as though they’re adding value more quickly
Every time your organization loses an employee that it would have rather kept, the organization loses. As mentioned at the beginning of this blog post, it loses time, it loses productivity, and it loses money. It might be a little of each, or it might be a lot, but the loss does occur.
This is why onboarding and retention are important for ALL organizations. It’s not just important for the Googles and Amazons of the world. It’s not just important for white-collar companies. It’s as important for your organization as it is for Apple.
In addition to proper onboarding, hiring people who are the best fit for the position is another way to ensure that employees stay with their organization. The staffing specialists at Time Staffing have undergone extensive training in numerous areas involving hiring and employment, including screening, interviewing, and candidate selection.
Click here to learn more about Time Staffing’s services for employers.