The U.S. unemployment rate has dropped to 4.1 percent, but that low rate can make it challenging to hire good people. One solution is to make a concerted effort to retain your best employees.
That's a good idea for a number of reasons. Retaining talent saves you time and money in recruiting and training new hires. According to the Society for Human Resource Management (SHRM), the average cost per hire is $4,129 and takes an average of 42 days to fill.
Another study by Employee Benefit News found that the average cost to hire a new employee is a steep 33 percent of that worker's annual salary. So, for example, the replacement cost is $15,000 for a worker making $45,000 a year.
5 Ways to Chase Away Your Best
Recently an online article by Forbes contributor Michael Wood titled "How to Chase Away Your Best Employees" caught my eye. Have you experienced or observed any of the five practices mentioned in the article?
- Tolerating below-average work. Do you treat accept the less-than-acceptable work from some employees while not recognizing your high-performers for their great work?
- Sticking good employees in dead-end jobs. Instead, work with them to develop a clear path to advancement.
- Engaging in discriminatory work practices. Do you treat all employees fairly across the board? For example, are you paying women or minorities less for equal or better work and responsibilities?