Reducing employee Turnover to save money, keep customers and employees happy, and increase profits.
- Retaining employees avoids the high costs of recruiting and, in turn, allows employers to better reward employees for their years of hard work. In my time as a sales rep, I observed many best practices that encouraged high employee retention:
- Replacing an employee who has been trained on the operational needs and logistics of your practice, can be very costly and time consuming.
- According to the Midlevelu website, here is an article titled, “How much does it Cost your Employer when you quit. “
- “Replacing a bedside RN can cost upwards of $50,000. Keeping these employees on staff saves hundreds of thousands of dollars each year, enough to be shared by the employees and add to the bottom line. “Retrieved from Midlevelu.com website. Written on Feb. 28th, 2018. Reference: https://midlevelu.com/blog/how-much-does-it-cost-your-employer-when-you-quit
Another article listed below shows the Healthcare Turnover rates for nurses, PA’s, and physicians in a 2018 study from National Healthcare Retention and Staffing Report.
- According to the Daily Pay website, the chart above references an article titled, “Health Care Turnover Rates in 2018.”
- According to a study by National Health Care Retention and Staffing Report, “A Bedside RN averaged a 17% turnover rate while Physician Assistants, had a 14.2% rate.”
- “The turnover rate for younger physicians age 45 and younger was 17% which was almost double that of older physicians rate of 9%.”
- “Family practice physicians had a turnover rate of 14%.” Retrieved from Business.DailyPay.com website. Written by Megan Wells, November 14th, 2018. Referenced from: https://business.dailypay.com/blog/employee-turnover-rates-in-the-healthcare-industry
CEO Meet and Greet
What type of positive impact could take place if a CEO walked around the office to see how things were going for your employees?
- Employees want to contribute and feel their insight is making a difference.
- The CEO will gain valuable ideas from employees who are working directly with customers.
- Opportunity to remind employees of the company vision and mission statement and how each of their roles is an important part of meeting and exceeding these goals.
- Shows the CEO various areas in which the company can improve, streamline processes, and save money in the long run.
How does a Company’s Mission Statement relate to each job role?
Do your employees know your company mission statement and why it matters?
- Mission statements are an important part of a business strategy, and they allow employees and customers to get a quick glimpse into the business.
- It is important to let the employees know the mission statement and how their role fits into the company’s mission.
- Employees with this knowledge are more likely to buy into this strategy and the importance of working hard each day to improve processes, and meet business and company goals.
- Results for both the company and individuals include higher revenue/bonuses/profit sharing.
- According to Entrepreneur.com. “A mission statement defines what an organization is, why it exists, its reason for being.
- At a minimum, your mission statement should define who your primary customers are, identify the products and services you produce, and describe the geographical location in which you operate.” Referenced from: https://www.entrepreneur.com/encyclopedia/mission-statement
Show your Employees you Value them.
Provide Bonuses, Stock Options, and Profit Sharing.
Can providing bonuses and profit sharing options based on performance help retain employees?
- Employees want to feel valued and compensated in return.
- In addition to receiving a paycheck, they want to receive raises, bonuses, and a share of the profits when possible.
- Companies that provide bonuses and profit sharing based on employee performance enhance employee morale, profits, and job performance.
Happy Employees can result in Higher Profits, More Satisfied Customers, and Less Turnover.
Following these employee retention strategies can help your company to retain employees, enhance employee morale and motivation, save money, increase profits, and in a position to provide great customer service. Instead of facing a high employee turnover rate, your company and employees can focus efforts on providing a great service for years to come. Read More