Ep 52 // The True Price of Losing an Employee (There are SEVEN costs)
Employee retention is key to building a sustainable and scalable business. In this episode, Akua talks about what leaders, managers, and founders should look for in attrition rates and how to avoid high turnover.
During this era of “the great resignation,” employees reflect on the type of work they do and often take advantage of better or more aligned opportunities. Subsequently, it is more important than ever that leaders focus on retention and on the workers that are already in the company rather than constantly recruiting new ones.
Akua has personally experienced hiring and even firing hundreds of employees, and she is ready to share what she has learned and expose the seven true costs of losing an employee.
Highlights in this Episode:
- There are many hidden costs to losing an employee, and they are not just financial.
- “Losing” an employee also means when a worker is disengaged and not as productive as they should be.
- When you lose an employee, you also lose their institutional knowledge and processes they may have been involved in.
- Costs include the time and energy you take to hire and train a replacement.
- A new employee can take 1-2 years to reach top productivity.
- Psychological safety of current employees should be a consideration after an employee leaves or is let go. It’s important leaders address the situation.
- New people in your business mean more errors and mistakes due to inexperience.
- Leaders need to be proactive rather than reactive when it comes to retention.
- Just as important as pay, workers want to feel valued.
- Employees should be aware of their impact on the bottom line, which can help motivate them.
- Onboarding and having the right processes and structures will help attract the right people to your business.