There are few situations in the world of business that spark as much fear into the hearts of company executives and employees alike as recessions. Simply mentioning the word “recession” is sometimes enough to get businesses all panicky. That is why so many companies are freaking out about the very real possibility that a recession is coming soon.
Despite the very serious threats that recessions pose on virtually all businesses, there are some things you can do to try and minimize the effect a recession has on your business. One of these things involves achieving high rates of employee retention.
Rather than being a revolving door of employees, which can actually amplify the negative effects of a recession, your company should strive to retain as many employees as possible.
Here are a number of reasons why keeping your employees is so vital during a recession.
Loss of Talent
The possibility of losing a few people who are good at their jobs might seem unfortunate but not all that crippling to a business. After all, as the old saying goes, “there is plenty of fish in the sea.” Unfortunately, that does not seem to be the case right now. In fact, many industries are facing a serious talent shortage problem and are struggling to find people with adequate skills to do the jobs that need to be done.
This is bad under regular circumstances, let alone during a recession. Your inability to retain good employees forces you into a situation where finding replacements who are as good is extremely difficult.
Lack of Workplace Bonding
Liking the people you work with is a crucial part of boosting productivity and achieving job satisfaction. Employees need to form bonds with coworkers to truly love their jobs, which, in turn, improves efficiency rates and the quality of their work. But developing that essential bond between employees is hard when they need to work with someone new every couple of months.
That is why it is so important that companies are able to retain their employees and allow them the chance to form a real bond. It helps with workplace satisfaction, so everybody wins.
Waste of Resources
As any manager or employee who has ever trained another employee knows, teaching someone how to do their job is both a lengthy and boring process. So when you are losing employees on a regular basis, it means frequently hiring new ones and starting the training process all over again. This is hours upon hours and countless dollars that you are needlessly wasting.
Not to mention, generally, it is viewed that the cost of turnover can be 1.5x an employee’s annual salary due to the cost of recruiting someone, training and onboarding. Not only are you wasting talent, but you end up losing money that can add up fairly quickly.
Retaining employees is only one of the many ways that your company can improve and better prepare for a possible recession. To learn more about improving your workplace system, contact us today.