When employees leave your MSP company, you not only lose valuable talent, but money, too. Four things influence the cost of turnover: termination cost, hiring and training, a vacant position, and loss of productivity until you hire a new employee.
Reduce Turnover Costs by Addressing Employees’ Needs
According to Work Institute, the estimate for the cost of employee turnover is about one-third of an employee’s yearly salary. Their report also says that in 2018, 42 million people will quit their current jobs. Every year, the expense of turnover rises, so it’s important to address your employees’ needs now.
Top 5 Reasons Why Employees Quit Their Jobs
If you understand why your employees leave their jobs, then you can work toward retaining them.
- Professional growth opportunities – Many employees feel that their jobs don’t offer room for advancement and growth. Providing training and opportunities so your employees can grow professionally is a step toward retaining your workforce.
- Work-Life balance – Today’s employees are looking for job positions that offer them ways to balance their careers and personal lives. By offering solutions, such as flexible schedules, telecommuting days and daycare, your employees will have more reasons to stay with your MSP company.
- Health issues – Sometimes, employees leave because of personal or family health problems. It can help to offer well-being programs to keep your staff healthy both physically and emotionally. You can offer exercise rooms, sleep rooms, well-being coaches and even outdoor time. All these things contribute to your employees’ well-being.
- Manager attitude – It’s essential to have supportive leadership that encourages employees to communicate freely. Employees want to be respected, recognized and appreciated, so you need managers that can show they care about your team.
- Salary and benefits – Although salary is a reason why some employees leave, more leave because they lack benefits. Employees expect that you compensate them for the work they provide, but they want more. Offering other benefits, such as rewarding top performers, employee appreciation events, and providing health insurance, daycare compensation and commuting costs go a long way toward retaining employees.
Develop a Positive Company Culture
These five reasons for why employees leave their jobs all come down to how they view your company culture. Nurturing a positive company culture is the best way to retain employees, keeping them happy, enthusiastic and loyal. Here are several aspects of a positive company culture:
- Trust in management
- Positive workplace
- Praise and recognition
- Career advancement opportunities
- New challenges and responsibilities
- Respectful relationships
- Work satisfaction
- Good communication
- Career training and mentoring
- Flexible work time
- Informed about business goals
Today, MSP company employees have an abundance of job options. So, as the competition for employees heats up, you must act quickly to retain your existing staff. You can retain your employees if you design retention strategies that focus on a positive work environment and trusting relationships.