In years gone by, it was common for people to work with a single company right up until their retirement, but that is no longer the case. Today’s workforce often change employers looking for pay increases, new roles or challenges and better benefits. In this blog, we examine how the culture of transiency and low staff retention rates impact modern workplaces.
The Great Resignation and global labor shortage are severely impacting business. According to a Mercer report studying the US workforce, 81% of employees would leave their job for a better opportunity. Additionally, Millennial employees are more than twice as likely to quit their job than those in the Boomer generation. With the newest generation jumping between jobs, what can businesses expect in terms of staff retention impacts?
Depending on your industry, high turnover may be the norm. For example, the hospitality industry or retail. For other organizations high staff turnover can have serious negative impacts. Having reliable and loyal employees is extremely valuable though finding dedicated staff is proving to be a real challenge.
Why having a high staff retention rate matters
Many of Cloudstaff’s customers start with small teams of between five and ten staff. In smaller teams, losing a team member that you have trained can be very disruptive.
According to Centric HR, replacing an employee can cost up to 20% of their salary and it will take 6-9 months to get the new employee fully trained.
Retention rates are often overlooked when a company implements an outsourcing business model, however, it is really a vital statistic to take note of.
High staff retention rates speak volumes about the working conditions and culture of a company. In the outsourcing industry, it is even more vital and has tremendous value to the customer. Having a dedicated, long term team invested in your company will help achieve your goals and produce excellent results.
Here are a few reasons why it’s important to value your people and invest in staff retention strategies:
Long-term employees build a strong knowledge base
Staff who stay with a company for many years know and understand the company’s products, services and culture. They have a great deal of knowledge about business processes and workflows and understand what works and what doesn’t. They’ve developed solid expertise and proficiency over the years, leading to fewer errors and higher levels of productivity.
There is no career free of challenges. But rather than walking out, dedicated employees choose to stay and will even help your business bounce back during difficult times. They acquire knowledge from experience and can be a real asset to a company.
“It has been a journey of continual growth over my 10 years with Cloudstaff. There are always challenges and times where you need to step up. Cloudstaff has always been supportive during those times by providing training and helping us develop our careers.”
BryanS, Cloudstaff Business Analyst and 10-year Service Awardee
Company stability is reflected in staff retention rates
One of the top reasons employees change jobs is an unstable work environment. For an organization, employees quitting their jobs can cause workflow and process disruption. It leaves your remaining team members picking up the pieces and adding work into their workload. Additionally, it takes time to find, hire and train someone to fill that position, causing further disruption.
Aside from a growing revenue, a stable company looks after the welfare of its employees. They promote a great workplace culture which helps build confidence and trust with customers and employees.
“Cloudstaff’s leadership team has built a family-oriented company culture and has been committed to building the number one workplace in the Philippines. It’s a place where people love to come to work each day”.
AnnF, 10-year Cloudstaff CEO Executive Assistant on one of the many reasons why she’s remained loyal to the company
Our culture promotes hard work, togetherness and personal and professional growth. We reward hardworking and dedicated staff by providing career opportunities and a chance to continually evolve and become the best they can be while having work security.
Build an invaluable support team
Every time you hire new staff, you also need to onboard and train them. This is where long-term employees can step in and help. They can provide the support that new employees need. When they struggle with certain tasks, the more experienced ones can assist them to resolve issues quickly, saving time for everyone.
Senior staff are also able to pass on their knowledge to junior staff, helping promote innovation and further company growth.
“It’s about sharing your legacy, your knowledge and experience, especially to young people who are starting their career and want to be successful.”
BryanS
We heavily invest in our employees’ professional development. With skilled, experienced staff leading the teams, clients can rest assured that everyone understands the task at hand and the steps that must be taken to achieve goals.
“It’s all about becoming a better leader. I’d like to inspire my teammates to become better versions of themselves with their skills. In return, that’s going to impact the way we deliver the products and services we offer to end users.”
ReoM, Cloudstaff Software QA and BA Manager for the Hub Development Team
Cloudstaff: Advancing to the Next Chapter
Job longevity is often mistakenly associated with not having a great, meaningful or rewarding career. At Cloudstaff, we could not disagree more.
We believe that a career at Cloudstaff is an exciting, dynamic and challenging journey where hard work is recognized and rewarded. Where training and opportunities ensure that our staff grow every single day and, more importantly, staff are a part of something bigger – The Cloudstaff Family.
“When people love what they do, a decade of hard work can feel like just a brief moment. I’m elated and fulfilled to still be part of Cloudstaff’s success for the last 10 years and counting. Being part of Cloudstaff’s growth is a significant milestone and I feel that each and every time we open a new office.”
AnnF, Assistant to the CEO
“Working in a company for 10 years is not a walk in the park. There will be highs and lows in anyone’s career. But what’s truly important is to always be hungry for knowledge and improvement, challenge and surround yourself with people that could bring a positive impact in your career, but most of all, enjoy each moment, whether positive or negative, because those will help shape you into what you want to become”.
DianneZ, Business Analyst
Ensure high staff retention with Cloudstaff
Cloudstaff has always understood the value of staff retention in outsourcing, not only for our customers but also our staff. With a staff retention rate over 98%, Cloudstaff is an industry leader in an environment which typically sees a transient workforce. We are proud to recognise the number of employees who have contributed to the business’s and our customer’s success for more than a decade.
Ready to start your outsourcing journey or want to learn more about how outsourcing can help take your business to the next level? Speak with us today.