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Why your employees are leaving you and how to make them stay (part 7)

PAYDAY

Your employees weren’t getting paid enough.

Continuation of part 6…

Your employees weren’t getting paid enough.

If this last one surprises you, then you’re kidding yourself. One of the best ways to show your employees you care about them is to provide them with competitive salary and benefits.

The latest research on the Romanian HoReCa market found that 38% employees said they’d be most likely to quit their jobs because of inadequate salary and benefits.

Interestingly, gripes about salary tend to gradually decrease with workers age. Employees over 60 care less about compensation – in fact, only 8% of people in this group reported that they would quit because of unfair salary.

Tips for Fixing It

Paying your employees more than they can get from a comparable job will certainly help with retention. But we know money doesn’t grow on trees … so how can you justify paying your employees more?

One way is to understand the cost of employee turnover. It costs time and money to recruit, hire, and train new employees. You’ll also need to factor in lost opportunity costs. What does that look like in numbers? Here’s the break down:

  • For entry-level employees, it costs between 30-50% of their annual salary to replace them.
  • For mid-level employees, it costs upwards of 150% of their annual salary to replace them.
  • For high-level or highly specialized employees, you’re looking at 400% of their annual salary.

The steeper the learning curve, the more that paying efficiency wages can help.

When more people quit their jobs at their own will, it means the job market is strengthening. But it’s also bad news for employers. To keep people working for you, be sure you and other members of your management team proactively keep an eye out for signs your employees are disengaged, and make changes to improve employee retention rates where needed.

End of the article.

Hope that we were helpful and that your business will feel some changes.

Good luck to all.

 

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