Employee Engagement and Turnover - The Real Cost of Losing Staff: Why Keeping Your Team Happy Matters

To really do well in today's competitive world, businesses need to properly understand how much it hurts when lots of staff leave. So, it's super important to focus on making sure your team feels involved and wants to stay. This helps keep things steady and everyone working well together. Losing people costs a lot, both in terms of money and how everyone feels at work. For people in HR, business owners, and team leaders, making staff want to stay and feel loyal is key. This article looks at why spending time and effort on keeping your team happy is really important for doing well in the long run.

Understanding How Much It Costs When Staff Leave

When lots of staff leave, it can really damage a company's money and how well it works. Let's look closely at the different costs when you lose people and how these things can have a lasting effect.

How Losing Lots of Staff Affects Things

First off, when lots of people leave, it can quietly but seriously harm businesses. It definitely makes things less productive, makes the team feel less positive, and can upset customers. Also, when experienced staff go, they take important knowledge and skills with them. Because of this, new people need time to get up to speed, which means things might not run as smoothly for a while. What's more, when staff change often, it messes up how the team works together. This often leads to people feeling less motivated and not as involved, which hurts the atmosphere at work and how happy people are. On top of that, customer relationships can suffer when key staff leave because customers might worry if the company is stable. As a result, this can mean losing business and damaging the company's good name.

Working Out the Real Cost

To really understand how much it costs when staff leave, it's important to think about both the costs you can see directly and the ones that are harder to measure. According to experts like Croner, these costs can be surprisingly high, often more than what the person who left earned in a year. Things you pay for directly include:

• The cost of finding new staff (like putting adverts out and using agencies)
• The time spent doing interviews and choosing who to hire
• Getting new staff settled in and trained

On the other hand, the costs that are harder to see, even though they can be bigger, include:

• Less work getting done while you don't have someone in the job
• The team not working as well because others have to do extra work
• More mistakes happening or the quality of work dropping while things are changing

To work out the full cost, businesses should think about the salary and benefits of the person who left, the time and effort spent hiring and training someone new, the work that didn't get done, any chances to earn money that were missed, and how it affected the team and customers. By looking at all these things, companies can get a much better idea of how losing staff hurts their profits.

How It Affects the Business in the Long Run

Looking ahead, if lots of staff keep leaving, it can really damage how a business grows and succeeds. Money-wise, constantly having to hire and train people uses up money that could be spent on new ideas or growing the business, making it harder to stay ahead of others. When it comes to how things run, losing experienced staff means losing important knowledge and skills, which makes things less efficient and can lead to mistakes that harm the company's reputation. Culture-wise, when people keep leaving, it makes things feel unstable, leading to staff feeling less involved, low spirits, and a bad atmosphere at work that makes even more people want to leave. In the end, all these things can really stop a company from reaching its goals and staying competitive.

Why Having Good Ways to Keep Staff is Important

Having good ways to keep staff happy and wanting to stay is really important for having a team that's involved and stable. This then lowers the costs of lots of people leaving. Let's look at the key things that make these strategies work well.

Making Staff Feel More Involved

When staff feel involved in their work, it's a key part of keeping them happy and helping the business do well overall. Staff who are involved are more productive, more loyal, and more likely to stay longer. To make staff feel more involved, companies should focus on:

• Clearly telling everyone what the company's goals are and how their individual jobs fit into that
• Giving regular feedback and saying thank you when people do a good job
• Offering chances for people to learn new skills and move up in their careers

These things help people feel like they have a purpose and belong. When staff feel valued and can see a future for themselves at the company, they tend to stay committed and involved. Also, staff who are involved often become people who speak well of the company, which helps its reputation and attracts good new people. This positive cycle can really reduce how many people leave and the costs that come with it. In fact, experts like BI Worldwide have found that companies with really involved staff see 59% less turnover, showing just how important it is to focus on involvement when trying to keep staff.

Creating a Good Atmosphere at Work

A good atmosphere at work is really important for keeping staff and helping the business succeed. It affects how people feel every day and whether they decide to stay with the company. Key parts of a strong and positive work atmosphere include:

• Open and honest communication
• A good balance between work and personal life
• Making sure everyone feels included and valued
• Lots of teamwork and people helping each other

When staff feel respected and supported, they enjoy their jobs more and are more committed. This then leads to them being more productive, more creative, and generally happier at work. Building a good atmosphere takes consistent effort from leaders. It's not just about having rules, but also about leaders showing the kind of behaviour and values they want everyone else to have. Remember, a good atmosphere isn't just about perks or a nice office. It's about creating a place where staff feel empowered, listened to, and motivated to do their best.

Ways to Get Better at Keeping Staff

Having good ways to keep staff is vital for reducing how many people leave and the costs that come with it. Key things to do include:

• Good pay and benefits: Make sure what you offer is as good as or better than what other companies are offering.
• Chances to grow: Provide clear ways for people to move up and support them in learning new skills.
• Regular feedback and saying thank you: Have systems for talking about how people are doing and recognising when they do well.
• Flexible working: Offer options like working from home or flexible hours to help people balance work and life.
• Looking after staff well-being: Invest in things that support their physical and mental health.

These things should be tailored to your specific team and how your company works. Getting regular feedback from staff through surveys or group discussions can help you figure out what works best. Remember, keeping staff is an ongoing thing. You need to keep checking and changing your approach to meet the changing needs of your team and the business world. You can also look at industry averages for staff turnover at websites like Capacity Insights.

Building Strong Loyalty from Staff

Building strong loyalty from staff is a key part of having good strategies to keep them. Loyal staff are more involved, more productive, and more likely to stay with the company for a long time.

The Benefits of Having Loyal Staff

Having loyal staff brings lots of good things that really help a company do well. Firstly, loyal staff tend to be more productive and get things done more efficiently. Because they know how the company works and its culture, they can work effectively, which boosts performance and profits. Secondly, loyal staff often act like people who speak well of the company. They say good things to customers and potential new hires, which improves the company's reputation. This helps build stronger customer relationships and makes it easier to hire good people. Lastly, loyal staff help create a positive atmosphere at work. Their commitment and enthusiasm can inspire others, making the whole team more involved. According to experts like the CIPD, companies with high staff loyalty see less turnover, reduced recruitment costs, and better performance overall.

The Role of Managers in Keeping Staff

Managers play a really important role in keeping staff happy and loyal. Good leaders can really influence whether someone decides to stay or leave. Key things managers should do to help keep staff include:

• Clearly telling people what's expected of them and what their goals are
• Giving regular feedback and saying thank you for good work
• Supporting people's development and helping them learn new skills
• Dealing with any worries people have and sorting out disagreements

Managers should create a place where staff feel valued and supported, talking to them regularly to understand what they need and what they want to achieve. Leaders should also point out opportunities for growth within the company. When staff can see ways to move up, they are more likely to stay committed. Remember, people often leave managers, not just companies. So, spending time and effort on training managers to be good leaders can really improve how many people stay and how happy they are at work.

Encouraging a Supportive Environment

A supportive work environment is vital for keeping staff loyal and wanting to stay. This means making sure there's respect, teamwork, and open communication. Key parts of a supportive environment include:

• Promoting a good balance between work and personal life
• Encouraging teamwork and sharing knowledge
• Providing resources for mental health and well-being
• Valuing different points of view

When staff feel supported, they are more likely to be involved and committed. This kind of positive culture also attracts good new people, as they look for workplaces where they'll feel supported. Leadership has a key role in creating and keeping this supportive culture, showing the kind of behaviour they want to see and always highlighting how important it is. Remember, creating a supportive environment takes ongoing effort and you need to adapt to meet the needs of your staff and the company.

Ready to Look After Your Team Better and Reduce Staff Leaving?

When lots of staff leave, it doesn't just cost money; it also affects how the team feels, how productive they are, and what people think of your company. We're here to help you change this and build a happy, loyal team. Here's how Your People Champion can help you:

• We'll look closely at why your staff are leaving: We'll dig deep to understand the reasons and find the key areas where things can improve.
• We'll help you create ways to keep your staff that work for you: We'll work together to come up with practical and effective plans that tackle your specific issues and get your staff more involved.
• We'll help you design ways to get staff more involved: We'll help you build a culture where people feel appreciated, recognised, and have chances to grow, making them feel valued and invested.
• We'll give you expert advice on building a positive and supportive place to work: We'll help you cultivate an environment where staff feel respected, listened to, and motivated to do their best.
• We'll offer training for managers to help them be better leaders: We'll give your managers the skills to be good coaches and mentors who inspire loyalty and make people want to stay.

Stop losing good people and start investing in your most important asset: your team. Get in touch with us today for a chat and find out how we can help you build a more engaged, loyal, and successful company. Email us at: hello@yourpeoplechampion.com Call us on: 01252 268904