The expression, you don’t know what you’ve got until it’s gone is all too true in employee retention. Far too often businesses don’t pay enough attention to individual employee satisfaction until a prized employee puts in their notice. Companies might scramble to offer the departing worker more money or change up their responsibilities, but by that point it’s almost always too late.
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Valuing Employees as You Value Customers
It?s a curious problem for companies to be in, because most companies are well aware of the crucial importance of investing in customer retention. There’s an oft-repeated estimate that it costs about five times as much money to acquire a new customer than it does to keep an existing customer.
The same logic applies to employees. All else being equal—i.e., employee performance, job role, education, experience, etc.—it’s much more expensive to keep an existing employee than to recruit, hire, onboard and train a new one.
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