If you own a business you have probably crossed your mind more than once if it is better to hire new people or try to retain talent. And this is not easy.
Primarily when it comes to a small business in its infancy, the priorities are to try to save as much as possible to be able to spend the first 3 years and then start to make a profit. The selection of staff is essential, to find people with the right talent and who are also committed to the growth of the company, providing valuable ideas.
As time progresses and companies consolidate, they tend to pay more attention to hiring experienced talent to help them make more profits. This really is not bad, but you should not forget to create the ideal environment to make your employees loyal and committed.
Employees without vision and motivation cease to feel special and become discouraged, working only to earn money: these do not last more than 2-3 years in a company. This often happens a lot with millennials, which when they feel bored or stuck decide to move on to other options.
What companies have forgotten in the operation is that being liquidating and accepting resignations every 2-3 years represents an unnecessary expense, when you could be investing in an organizational culture.
In addition to the expense represented by the settlement, it also depends on the type of contract that the person signed and whether the remuneration is integral or has variable components.
In addition to having liquidated the person, they must incur costs of losses and try to cover the new vacancy, which is estimated to be 12 times the value of the person’s salary. This figure has been taken from the estimate that a person will cover the job for 2 to 4 months, the cost of learning the new employee that takes from 3 to 6 months, and the cost that the person takes in giving the optimum expected performance that can Take up to 4 months.
Then companies must recognize that it is important to identify when an employee is unhappy or motivated and might be considering giving up to take appropriate actions, rather than accepting waivers in a row.
Some of the keys to retaining talent are:
Leadership: The main retention factor is strongly related to a good team leader, someone who can lead people in the right way and build trust.
Understanding employees: The company must be aware of the needs and interests of employees. Based on this you can create motivation strategies to meet the needs.
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Purposes and contribution: people have the desire to know how their activities or contributions impact the development of the company. It can be done by integrating professional or career plans with those of the business.
Facilitate development opportunities: employees will hardly be part of a company in which there is no opportunity to grow. The company must be clear when showing the growth opportunities of each position.
As you can see, in the long run, you save a lot more money by retaining staff than by investing in new talent.