Inside Small Business | Small Business & Home Business Marketing

How to retain quality employees

By: Roger Herman, CSP, CMC author, Keeping Good People

Every time you lose a valued employee, you’re losing money right off your bottom line. It makes sense to stabilize your workforce as much as you can, so you can generate a stronger profit.

Human resources? Bottom line? Yes, they are connected. When you have to replace an employee, it can be costly. First of all, you may have to pay overtime or hire temporary workers to fill the void. Production becomes more expensive, if you can even keep up with what has to be done. Falling behind costs money . . . and may cost you a customer.

Recruiting, selecting, and hiring a new employee takes time and money . . . neither of which you have a lot of. Then, when you do find somebody that you hope will work out, you have to invest in training time and some team building to move that new employee into a position of productivity. Meanwhile, the business keeps moving. There’s no way to push a “pause” button while you adjust.

Benefits of Stability
Most of the benefits of workforce stability are obvious. Let’s explore a few others.

When you have a stable workforce–few, if any, people leaving unexpectedly–you also enjoy a good morale. People know each other, they’re comfortable with each other, they work well together. This kind of relationship can be powerful when there’s a rush order to get out or when there’s a problem somewhere in the manufacturing process. People are more likely to pitch in and help each other when they know each other and believe in mutual support.

Read the rest of the article at Logoworks.

           

Posted on Monday, July 31st, 2006 at 8:45 am and is filed under Employee Relations, Small Business. You can follow any responses to this entry through the RSS 2.0 feed.