Your primary motivator in business is to make profits. You might put this above all else and in turn, your employees’ happiness might be low on your priority list. But employee satisfaction leads to employee retention, which leads to reduce costs of turnover. In the end, prioritizing your employees will lead to higher profits.
The Cost of Employee Turnover
When you lose employees, you face the expenses of turnover. Though it’s difficult to precisely calculate the high cost of turnover, most experts state that it is approximately 25% of an employee’s salary, though this is a conservative estimate. Every employee you lose can cost you more than $5,000. If you lose 30 employees a year, who were making $20,000 in salary, you would be adding $150,000 a year for turnover! Naturally, this high cost can really hurt your bottom line.
Much of the expenses of turnover come with the cost of recruiting and hiring, including paying to advertise your open positions, performing resume evaluations, conducting interviews, and performing background checks. But another significant turnover expense is training—it can take months for a new employee to be fully trained and working at full efficiency. And in the meantime, you face reduced productivity and have to pay for training courses and trainers.
On top of the money you’ll be losing to turnover, you will also lose valuable company knowledge that the employees will take with them and see disruption in customer service. Plus, when one person leaves, the loss is felt throughout your entire company—other coworkers have to pick up the slack, and unspoken negativity can intensify, leading to a spiral into more turnover, and thus, higher costs.
Prioritizing Employee Retention
To reduce the cost of turnover, you should be prioritizing employee retention. As the employer, it is up to you to create a healthy and productive work environment that all of your employees will enjoy being a part of. No one wants to work in an unsafe, inefficient, and unproductive environment. Employee dissatisfaction will be rampant in such a workplace and you will not be able to avoid turnover.
One thing you can do to help with employee retention in order to save money is to optimize your cash management. You might be surprised to hear this as a solution to turnover, but it’ll help. Check out how below.
The Effect of Cash Management on Employee Retention
Optimizing your cash management processes can not only increase your cash flow and reduce the costs associated with your cash-handling processes, but it can also keep your employees safer, more productive, more accountable, and more satisfied in their jobs.
Investing in cash management solutions, like cash recyclers, coin counters, and bank note sorters, can increase your workplace efficiency and productivity. Both your front end and back end will become more productive and your employees will certainly notice the difference. They won’t have to come in early or stay late to count cash. They won’t have to worry about making counting or sorting errors and then having to pay for shortages. And even your lines will move faster when your systems are automated, so you’ll have happier customers who won’t be short and impatient with your cashiers once they get to the front of the line.
In addition, cash management solutions can enhance your security, making your employees feel safer in your workplace. Cash recyclers can act as vaults, which will reduce the likelihood of robbery. Counterfeit detectors can reduce the risk of fraud. And automated systems can increase accountability. Since every dollar will be tracked and reported, no one will have to worry about being accused of employee theft. Making your employees feel safe is your duty as an employer, and it can certainly help with employee retention, and in turn, save you money.
