It is absolutely vital to keep your company’s workforce engaged and happy in their current positions. Nothing hampers an organization’s operational efficiency more than constant employee turnover. It is a challenge affecting many parts of your company — from the leadership responsible for managing your workers to the HR staff charged with finding and onboarding the best possible candidates.
The enterprises able to hire and retain the best workers gain an advantage over the competition. With that in mind, what follows is a closer look at how much employee turnover may be costing your company in the oil and gas industry.
The Financial Costs of Employee Turnover are Real
A study from the American Center for Progress estimates it costs 20 percent of their annual salary to replace an employee making around $50,000 per year. This takes into account a loss in productivity as well as money spent engaged in the hiring process. These are hard numbers revealing the real cost of employee turnover.
The Company’s Overall Productivity Suffers
It becomes difficult to keep your organization’s productivity level at its best when suffering from regular employee turnover. A significant amount of company resources must be spent for the hiring and onboarding processes, with it all being for naught if an employee leaves before the return on this investment is achieved.
Your remaining loyal employees are overworked trying to pick up the slack; project deadlines are missed, and your customers and clients become unsatisfied. This is a vicious cycle only stopped by an emphasis on employee retention.
Don’t Let your Organization develop a Skills Gap
If there isn’t enough interesting project work at the office, your best employees might look elsewhere to regain the inspiration in their career. If any valuable knowledge — software systems, best practices and procedures, etc. — leaves with these workers, your company can suffer from a skills gap causing another hit to your operational efficiency. Make sure you consistently challenge your top talent with exciting assignments to ensure their loyalty.
An employee retention program definitely helps keep your company operating at its best. It is an important part of mitigating any hit to your firm’s bottom line due to employee turnover.
If your organization wants additional insight on building — and retaining — a top notch office staff, talk to the experts at Global Personnel. As one of the top staffing agencies in the Texas oil industry, we offer the business acumen and vetted candidates to help ensure your company’s success. Schedule some time with us at your earliest convenience.