11 Feb Employee Retention And Happiness
Google, Apple and Zappos are some of today’s most successful companies and they all share one common characteristic – they encourage and foster a great culture within their company. They embody the entrepreneurial spirit within their employees giving them a chance to freely express and chase their ideas.
Culture is the centerpiece of employee retention brings with it happier employees who work harder. Retaining the best employees is ideal for the overall health of the company and cheaper than finding and hiring new ones, especially in smaller companies.
Employee Turnover Costs
The cost will vary from company to company and the role of the employee within your organization. Along with intangible costs – such as the time it takes to replace an employee – comes the tangible costs of replacing an employee – interviews, advertising, screening, hiring, training and management time. New employees will also lack the efficiency of the replaced employee and will likely commit more errors and take longer to solve business problems. Replacing employees also has an effect on your existing workplace culture, negatively impacting it and reducing productivity.
Happy Employees Work Harder
Investing in the happiness of your employees can provide you with significant returns. Research indicates that happy employees are 12% more productive than content employees and 22% more than unhappy employees. When you build a healthy culture in your business it will inspire your employees to work harder for you and they will actively maintain that culture. Bottom line is happy employees work more creatively, effectively and collaboratively with the end benefit being a high employee retention rate.
One thing that a healthy culture encourages is the entrepreneurial spirit among your employees. When your employees are as vested in the company as you are, they will make better decisions, excel at managing their time and exhibit stronger leadership skills. Your employees will be more valuable to your company and more self-sufficient by seeking out tasks in the best interest of the company, rather than waiting around for their next task.
Company culture is a defining characteristic of happy employees and a healthy business. Lower expenses, more efficient employees, higher employee retention, better work environment and a more collaborative team of employees will all lead to a more successful company through a strong company culture.