Every business owner knows that employee turnover can negatively impact your business’s bottom line. If you’re running a business like my virtual accounting business, hiring the best possible employees is crucial to your business and its bottom line and to the happiness of your clients.

High turnover means loss of productivity. It means you will have to take time to go through the hiring, training, and onboarding process. Getting a new employee up to speed takes time and that is certainly not billable time. The whole process is expensive! While you’re doing in the hiring process, you are doing less of the things that help your business grow and produce!

What are some of the reasons you may be having turnover? Here are a few:cost of employee turnover

  • You don’t offer any flexibility in work schedules. My employees are all remote, so that means they have a level of flexibility, but it doesn’t mean they can’t be available to care for client needs. Expectations need to be set.
  • You are a micromanager. If you have hired and trained well and have a good reporting process, let your employees do their jobs.
  • You don’t reward or acknowledge employees for a job well done. You don’t have to break the bank “rewarding” employees. Be creative in job incentives. Praise is a powerful incentive. Acknowledge them when they do something great and make sure the other staff know as well. I have found that the words “Thanks for all you do! I appreciate you!!” go a long way in creating a satisfied and loyal employee.

We’ve always believed in “hiring slow and firing fast.” Our new-hire procedure is in depth and we know that if a potential employee makes it through that he or she is well-suited to our environment and that they will likely be committed and dedicated.

Do you have a policy and procedure in place for hiring? If you don’t, you should start today.

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