Managing your workforce is incredibly important for any business. It’s a cost-effective way to attract and retain top talent, boost productivity and morale, increase retention, and reduce turnover. The health of your business depends on the strength of your workforce management resources.
High employee turnover leads to lower productivity.
The most important thing to know about employee turnover is that it’s expensive. High employee turnover rates lead to a loss of productivity, knowledge, morale, and customer service.
Low wages or poor working conditions often cause high employee turnover rates. Suppose you’re trying to attract new talent into your business with high salaries. In that case, you need to think carefully about how they fit into your overall plan for growth before making any decisions on hiring new employees.
Losing a great employee is costly.
Losing a great employee is costly. The cost of replacing an employee can be as much as $400,000 per year in the first year alone (according to the Society of Human Resource Managers). A trained replacement might be unable to do all the tasks so you could lose productivity and revenue.
In addition to these costs, if your company has a high turnover rate due to poor management practices or poor benefits packages, then there could be other impacts on its bottom line, such as having difficulty recruiting new talent who are attracted by different companies offering more attractive compensation packages and benefits packages.
A company culture of trust promotes teamwork.
A company culture of trust promotes teamwork. When employees trust their co-workers and managers, they are more likely to share information and ideas. Employees who feel comfortable sharing ideas with their colleagues will also be more likely to take risks to improve the organisation, an essential ingredient for business success today.
Trust is built over time through consistency from management and frequent communication between employees at every level of your company’s hierarchy—from executives down to staff members out into the field where actual work gets done daily.
Happy employees work harder than unhappy ones.
Happy employees are more likely to stay with the company, making their workplace better for everyone else.
Happy employees are also more likely to refer friends and family members to work at your company, which can mean more referrals in general—and that’s not even considering how happy people tend to be when they’re working hard!
Employee talent and skill gaps can weaken a brand.
When your employees aren’t as talented as they should be, it affects how customers see your company. Employees can share the company’s vision, explain how it improves their lives, or show how its products or services are valuable to them.
Employees who feel valued are more engaged at work.
You can tell if employees feel valued by observing their behavior.
Do they come in early, stay late and do extra work on the job? Are they actively involved in their company’s mission?
Employees who feel valued are more engaged at work. They will be more likely to perform better than other workers who don’t feel they’re being given the same respect and attention as everyone else.
The health of your business depends on the strength of your workforce management resources. This includes:
- Your employees’ productivity, morale, and engagement levels
- How well they are performing their jobs (or not)
- How well you are managing them
With all the benefits of hiring, training, and retaining talented employees, companies should ensure they are doing the right things to attract, train and maintain them. Suppose you want to build your business around this principle of value-based leadership. In that case, we recommend following these steps:
- Hire employees motivated by a passion for their work
- Create an environment that encourages trust among employees (both inside and outside the company).