Why are your staff leaving you and how can you keep them?

Research by McKinsey & Company found that the percentage of people who left their job without a new job in hand was around 40 per cent. For those still speculating about quitting, the proportion of those who would consider it without a new job offer was even higher, at 60 per cent.

A large number of employees are not leaving jobs due to being headhunted or greed for a higher salary. Randstad's 2022 Employer Brand Research (REBR), based on an independent survey of over 163,000 respondents and 5,944 companies in 34 countries revealed that work-life balance was the most important driver when it comes to choosing a new employer. A reported 65 per cent of respondents listed this as the number one priority, even over salary.

Staff are leaving because they don't want to work for their employer anymore, just think about that, 60 per cent of people hate their job so much they'll consider risking unemployment and financial insecurity to get away from it and 40 per cent already have.

You don't need to spend a lot of money.

In fact, you could save money!

Recruitment

The average cost of recruiting a new member of staff is at least £6,125 (including internal staff costs and external fees) and can be much higher depending on the seniority of the role. If you have a team of 20 and a turnover rate of 15 per cent to 17 per cent a year (the average according to CIPD) then you need to replace 3 to 4 staff every year. That's a cost of at least £18,375 every year. Imagine, if you spent £10,000 on retaining your staff each year, you'd still be £8,375 up, not including the increased productivity you'd have.

Training

It always surprises me when I ask a client about staff training and they say: "They'll learn by doing the job." A lot of companies, small and large, think that by cutting back on training they are saving wasted money.

By ensuring that your staff are properly trained you will:

• Improve the productivity of new employees, they'll be working the right way from day one.
• Reduce errors which always cost the business money.
• Be able to promote from within keeping your recruitment costs down.
• Have better managers that motivate their teams rather than demotivate them, increasing productivity.

So, by having well-trained, happier staff, who are confident in their jobs and feel that their company is investing in them, your profit margins will also go up.

Remote Working

Data from Global Workplace Analytics estimated that companies can save an average of around £6,810 per year for every employee that spends at least half of their time working remotely. By allowing some remote working, you are saving money on rent, cleaners, utilities etc. and therefore increasing profits.

Other research, by finder.com, also says that on average, each of these workers will save £44.78 a week by cutting out things like commuting and buying lunch.

Think about these figures, by allowing remote working (where possible) your business could save almost £7,000 per employee and each of your employees would have an extra £2,300 per year in their pockets which is the equivalent of a £3,000 pay rise.

Flexible Working

Flexible working is not the same as remote working and telling everyone to work a 4-day week isn't being flexible either.

Flexible working means giving staff the flexibility to make their own decisions about when, where and how they work. Most companies will struggle to be 100 per cent flexible but flexing where you can will improve staff morale which improves retention, can increase productivity and improve your success at recruiting the best staff.

You might flex on working hours, allowing staff to work around core hours, perhaps arranging working hours with their teammates instead of putting requests into management or HR. This helps with school drop-offs and pick-ups, avoiding traffic during commutes and much more while making your staff feel more empowered.

You might flex on where your staff work, some of the time. If they have to wait at home for the plumber, rather than wasting time and booking a holiday, they can work from home.

Flexing on how your staff work is much harder, but removing any arbitrary rules that are a legacy of old tools or technology, will allow your staff to work more efficiently.

What else?

Ask your staff what would make the difference for them, what it is about working for your company they love and what makes them want to leave. Let them know that you are genuinely interested in their answers and providing a better working environment.

It may surprise you how easy it is to implement what is needed to stop your staff from leaving and ensure that you are offering a better working environment than your competitors so that their staff want to come and work for you while your profits go up.

By Steve Balfour-Ackroyd thejobguru

Steve Ackroyd is the founder of The Job Guru (also known as TJG), a company that helps other businesses to find and hire new employees through the Application Booster service. Steve has over 2 decades experience of working with small businesses, helping them to grow through providing expert knowledge, consultancy and services both online and in person.

Steve has been helping companies recruit for the last decade and has built up a considerable following over that time by providing honest, straightforward advice to help business owners understand how to find and retain the best employees for their businesses.

You can find more about Steve on his website www.thejobguru.co.uk or his LinkedIn profile https://www.linkedin.com/in/thejobguru/.