Most executives and HR are frustrated by the high turnover of staff.
Did you know, according to the REC (Recruitment and Employment Confederation), replacing an employee can cost a business up to 2.5 times the employee’s salary? This means that a bad hire at the mid-manager level, earning an average of £42,000 per year, could cost a business over £100,000 in replacement costs alone.
What is the Impact of this?
The financial impact is one thing. There are also implications you need to be aware of. This includes:
1) Resource Allocation: Organisations need to allocate considerable resources to the recruitment and onboarding process. High replacement costs divert financial resources that could be utilised elsewhere for business development, innovation, or employee development.
2) Productivity Impact: The process of replacing an employee can lead to a temporary decrease in overall team productivity. New hires typically require time to acclimate to the organisation’s culture, processes, and responsibilities, impacting the team’s efficiency during the transition period.
3) Employee Morale: Frequent turnover and the need for replacements can negatively impact the morale of the remaining team members. It may lead to uncertainty, decreased job satisfaction, and concerns about the stability of the work environment.
4) Reputation Damage: High turnover rates and the cost associated with frequent replacements can harm the organisation’s reputation. Potential employees may be hesitant to join a company with a perceived instability in its workforce.
How does Positive Intelligence® Help?
The statistic above underscores the importance of effective employee retention strategies. Organisations need to focus on creating a positive work environment, offering career development opportunities, and ensuring employee satisfaction to reduce turnover and its associated costs.
You can do this by implementing the 7-Week Positive Intelligence® (PQ) Programme. It is a fast-track approach to help your managers and their teams with mental fitness to rewire their brain for positivity.
Here are 3 main ways the PQ programme helps organisation retain their staff:
1. Increase Productivity
A team that does not produce may as well make redundancies now. It will affect your bottom line. Productivity is paramount if you want to attract the best clients and staff.
2. Boost Relationships
A team without relationships is like a car without its tyres. And you will not get anywhere fast. Relationships are key if you want a team to be creative, move forward, and get results.
3. Improve Wellbeing
Motivation plummets, enthusiasm evaporates, and conflicts flare as burnout and overwhelm grip your team, ultimately jeopardising goals and creating a negative work environment.
Positive Intelligence® is designed exclusively for leaders and executives seeking to create a workplace culture that not only fosters team loyalty but also maximises productivity and reduces recruitment costs.
How Can We Help?
At Nova Associates, we understand the pivotal role effective leadership plays in retaining high-performing teams. Our team of Staff Retention Experts is committed to helping organisations like yours strategically retain top talent.
By planning proactively before individuals contemplate leaving, we empower you to invest more time in nurturing your teams and minimise the financial impact of recruitment and onboarding.
Uncover the strengths and areas for improvement in your current retention strategy using our comprehensive Staff Retention Audit, a Do It Yourself, Step-by-Step Guide. This Staff Retention Audit is available for you to purchase through this link.
You can also take the next step toward a thriving workplace by scheduling a free Strategy Call with Nova Associates to assist you and explore specific actions to address your unique challenges and move forward in retaining your teams.
Organise a free Strategy Call today. Choose Nova Associates—where talent retention meets Positive Intelligence®.