Why should business owners prioritize correcting employee retention issues? Because retention issues impact profit margins. Let me give you an example, a $50,000 employee that you have trained in and now you have to train in a new hire. Well if you use 50% of their income, that means it is going to cost you $25,000 to train them in. So you need to advertise, interview how many people, and then take your time and other employees times to get them up to the speed of the employee you just lost. This will cost you $225,000 and if you run a 20% profit margin well guess what? How many dollars do you have to sell of your products to get that $ 25,000 back. That’s $125,000 right there so imagine if you lost 5, 10 or 20 employees. This is a huge negative impact on your profit margins.
Why should business owners prioritize correcting employee retention issues?
Summary
At the GOALL Agency, we help businesses build strong cultures, invest in employee satisfaction, and create strategies that keep top talent engaged and loyal for the long run. Don’t let turnover hold you back—let us help you retain your most valuable asset: your people!
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