Hiring new employees can be quite a costly business when you go about it properly, and retaining employees is nearly always cheaper.
Here are some of the main costs involved in hiring new employees that you can save when you retain them instead.
There are always costs involved in hiring, including the money you spend on advertising the job and hiring a recruiter.
As well as the costs involved, you also have to spend time checking CVs and interviewing candidates, which is time that you could spend doing something else more productive.
Once you find a suitable replacement, it’s not over there. Often, they won’t be able to jump into the role and start performing to the same standard as the previous employee straight away.
You need to spend money on training them up – which could be expensive, depending on the type of job they are doing.
But they will also be spending time on the onboarding process, and that is time spent training rather than working.
Productivity will inevitably take a hit, and it could take months for them to get up to the required standard.
Impact on Other Employees
There are other costs involved that are not so obvious. For example, when someone leaves the team and a new person arrives, it takes time for the new person to become a part of the team.
People may be upset that their old colleague has left, and it may take them a while to get used to the new dynamic.
Engagement levels could fall as a result.
Save Money By Retaining Staff
As you can see, the costs can quickly add up. However, while it’s often cheaper to retain staff, that doesn’t always mean it’s the right thing to do, and the long-term benefits of hiring highly skilled people can be significant.
But it’s a good idea to try to retain good employees wherever you can.
You may do this by offering them a raise or recognising their hard work.
The longer you can keep them, the better it will usually be for your bottom line.