3 Reasons to Invest in Your Staff

The cost of hiring and firing…and hiring and firing.

1. It makes your employees nervous

When employees see newcomers well, come and go, it makes them nervous. Rightfully, they start to question their stability and their place in your company and start looking elsewhere. When there’s too much turnover it indicates one of many problems, none of which your current staff wants to be a part of. Is the training lacking? Were the expectations not outlined clearly and correctly? Are there personality clashes? It doesn’t matter what the reason is, this shows an unwillingness to invest in the people you hired for their abilities in the first place which can turn into a lack of employee loyalty and seriously hinder company morale.

2. It makes your clients nervous

Just as your employees start to ask what’s going on, clients either experience first-hand internal upheaval or sense it. If they’re dealing with a different manager, strategist, or assistant too frequently this breaks the RELATIONSHIP and it breaks the TRUST. Let’s face it if you don’t have client trust, the relationship and therefore your business will suffer. If you have long-standing clients jumping ship, it may be time to ask what message you’re sending from inside out.

3. It costs a lot of money

The cost of recruiting, training, and hiring a new employee cannot be underestimated. Time is our most valuable asset so we ask what value do you place on time if we break down all of the steps to hiring a new employee? According to Glassdoor, the average cost of firing and rehiring is about 16% of the employee's income. Let’s break it down on the losses only:

5 x Administrators hired/fired @ 50k per annum

16% of 50k = $8000

$8000 x 5 Administrators = $40k

You now have a $40,000 loss that went nowhere. Now you have to consider the time spent recruiting and hiring each of these people which are estimated to be between $3000 — $4000 over a 4 week period.

Where does your company stand on retention?