As a business owner, you probably know by now that training new employees is expensive. While it is a necessary cost of doing business and unavoidable at times, you want to do everything in your power to keep good employees. Doing this allows you to reduce the amount of time spent training new employees, so you can focus your efforts on growing your business instead.
That is, of course, unless you’re training new employees because your business is growing and you need additional help, which is a good thing for your business. Otherwise employee turnover can cost your business more than you realize. In fact, CBS News MoneyWatch reports that it costs businesses 20 percent of an employee’s annual salary to replace that employee if he or she earned $50,000 per year or less. Some studies cite that number as even higher.
Cisco cites turnover as the worst problem in the retail industry. Considering that the turnover rate for retail businesses is somewhere in the neighborhood of 67 percent, you might be inclined to agree. Retail has a notoriously high turnover rate, but there are things you can do that will help you improve employee retention for your small business, like those listed below.