Why keeping staff involved can affect your bottom line

An extensive report into employee satisfaction by an international recruitment firm has found that some businesses can pay a high price for staff turnover.

General manager of Kelly Services Penny O’Reilly says that most businesses will find that their staff are their greatest expense.

Results from the survey indicate that the cost of recruiting and training new staff for existing roles can amount to nearly 300 per cent of the position's yearly wage.

Costs like this could have an enormous impact on a business' bottom line, especially if the company experiences a high turnover rate.

Part of an effective leadership management plan involves the regulations that address how new staff are hired and trained.

If these strategies do not effectively deal with the matter of employee retention, managers may find themselves faced with increased recruitment expenses.

The main given by staff for leaving a new position is the lack of career progression opportunities afforded by their current workplace or role.

O'Reilly asserts the number one reason for high staff turnover is perceived lack of career progression.

"Employees are once again demanding consideration, coaching, understanding and clear advancement opportunities. If these demands are not met, employees are showing a willingness to terminate the relationship."