A blog about reputation, marketing and employee morale.

High morale = low turnover

Posted by Janet Smith on May 7, 2008

No matter what I write about, I usually end up emphasizing the same thing: to have motivated, engaged, happy employees you’ve got to communicate with, recognize, nurture and reward them. It’s the only way you can inspire your employees to truly become ambassadors of your organization. And while you’re at it, you’ll be retaining more of your best and brightest employees as well.

A focus on employee retention is important for all organizations. Especially when the employees you really want to stick around are among those who choose to stay. The unfortunate truth is that your so-so workers are more likely to stay with you regardless of how they’re treated. Average-at-best employees tend to have low expectations in general, so when they receive average-at-best treatment on the job they figure it’s par for the course.

But outstanding employees set the bar high for themselves and everyone else. They expect to be rewarded, recognized, respected, communicated with, and nurtured to maximize their potential. And in case you question the importance of expressing thanks to your staff, remember that about 80 percent of employees who quit their jobs say that not feeling appreciated is the primary reason for leaving.

Turnover is expensive. Depending on which study you look at, companies spend from 150 to 300 percent of an individual’s salary in lost productivity, recruiting, training, and other expenses to replace a professional employee. The cost of turnover among hourly workers is somewhat lower, but nears an amount equal to a year of pay.

Offer employees a great place to work. Your best performers will shine, your average employees will try harder, and your reputation will thank you.

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