Employee turnover can be one of the highest costs of any business when you take into account the cost of separation, recruitment, training, loss of knowledge and experience, transitional loss of productivity, and reduced workplace morale.
For a small business, these real and hidden costs can be seriously multiplied. In a small workforce, any small business employer can testify to the fact of how disruptive it can be if a key employee leaves, and it is not false to say that often if they are a popular co-worker, it can lead to further resignations.
In different industries the average “poor” turnover rate can be anything from 13% to 30% – that’s 13 to 30 people out of a hundred who leave your employment every year!
In a small business with a workforce of an average of 9 people, that’s 1 to 3 people leaving the business every year!
On the other hand, a settled workforce brings many benefits including the retention of corporate knowledge – and the fun of going to work!
How do you turn this around?