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Retain Employees Instead of Train

11/19/2015

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Whether they were a valued team member or someone who is no longer a great fit, losing an employee is not a pleasant occurrence. Studies show that retaining employees rather than training new employees is truly a more cost effective and smarter way to do business. An obvious pro for retaining an employee involves the time and money you will save. You may have annual raises and training costs that come with an employee who grows within your organization, but the cost to replace that person is much higher.

Things to consider include: 

  •  Human Resources Staffing Time
    • Exit Interview
    • Payroll Changes
    • Paperwork
  • Manager Time
    • Attempts to Retain Employee
    • Management of HR Tasks
  • Paying Out Accrued PTO
  • Cost of Temporarily Covering Employees' Tasks by Other Employees (PTO)
  • New Hire Onboarding Costs
    • Compensation
    • Signing Bonus
    • Relocation Reimbursement
    • Perks
  • Hiring Managers Time
  • Orientation and Training Time and Costs

Along with the high costs of onboarding a new employee, the affects of losing a valued member of your team will be felt for some time. Developing a cohesive team takes time as you have to insert individuals and allow the group the ability to mesh and grow together for a common goal.

Do you feel like there is never enough time to get all the things on your "to do" list done? Outsource some of those tedious and time consuming functions to LBMC Employment Partners so that you can focus on your employees. Learn more about our HR outsourcing services and call us at 615-369-5050 or email.