With the current economic malaise and the high unemployment rate, many employers have a false sense of security about their ability to retain their current employees. It is a misconception that has potentially serious short and long term ramifications. Here are five important reasons why employee retention should always be a priority:
- Superior Employees Always Have Options
Well trained and highly experienced employees are in demand at all times. Just as you are always looking to improve the quality and performance of your team, so are your competitors. They would be more than happy to poach even the “least” of your best performers. Be sure to treat your best employees with the attention and recognition that they deserve.
- The Base Unemployment Rate Can Be Misleading
Unemployment numbers are spread across a wide number of demographics. It can provide some guidance when hiring entry level, non-college educated employees but it is significantly misleading if you need employees with Bachelor’s or Master’s degrees who are unemployed at a much lower rate.
- The Best Leaders Recognize Their Own Worth
While, in many organizations, the best leaders have had their responsibilities broadened and their workload increased over the past few years, their compensation has not really kept pace. Simply put, it is a situation that will not be tolerated indefinitely by the “best and the brightest” in your company. Not addressing the retention of your team leaders is doubly damaging to your company as you must rethink your entire succession planning of your organization as well as find a replacement for the individual.
- Disgruntled Employees Never Forget
There is no changing the fact that the labor market will eventually recover and opportunities will be offered to your employees. While the lowered rate still leaves a significant applicant pool to choose from, the situation is changing. Rates are certainly higher than at the worst point of the recession and employees are starting to notice as recruiting activity has noticeably increased. Every employee will consider an offer from a competitor if they feel they have been mistreated or under compensated when they had no other employment options.
- Unhappy Ex-Employees are a PR Nightmare
Obviously, employees leave their current employer for a reason. If you are lucky, your relationship has been an amicable and a mutually beneficial one. If not, your ex-employee can denigrate you to your clients, vendors and, most importantly, future employees. It is a simple fact that, for better or worse, ex-employees are the most trusted source about the working condition at a company. If your ex-employees are sending a negative signal about the working conditions at your company, the recruiting and hiring process will be all the more difficult.
Employee retention considerations are often neglected and sometimes dismissed in a poor economic climate. HR directors and small business owners who make this mistake are courting disaster for their companies. More prudent employers will continually pay attention to their employees and make retention a priority.
