When you hire someone, you need to invest in that person, which has a mushrooming effect on your company. The hiring process itself is costly. It is possible to spend a lot on the hiring process and then further on upskilling and training someone who may decide to move to greener pastures. This is a disheartening and expensive process to repeat. For small companies or startups, such repetition can be unaffordable.
Other realities confront one, such as a global economy trying to rebuild after the severe impact of pandemic lockdown regulations. Many businesses struggle to stay afloat, never mind dealing with the competition and finding new markets to expand.
Add to this employee turnover − this can cripple a large or small business. Here, learn how to cut costs and reduce employee turnover.
What is the solution to reducing employee turnover?
Happy employees will stay the longest. However, it is a truism that many employees will outgrow a position or a company. The company may also be unable to offer recruits the salary and benefits they demand. Employees may linger while deciding which way to jump, costing you in productivity while they pause.
Often, employees hop over to your competition, furnishing them with your business secrets. The most common challenges for a business are a limited budget and inefficient managers.
Why did you hire your employee in the first place?
Employees are hired for specific jobs based on their job skills. Nearly 45% of their time is spent on tasks they are overqualified for, causing tension. Managers may not pick up the cues from unhappy staff, leading to employees losing heart and patience and simply jumping ship. At that stage, management is powerless to retain the employee.
A clever business trick is to outsource work. This eliminates the mundane and time-consuming tasks for a skilled worker, reducing employee turnover.
Virtual assistants or remote workers achieve these tasks at a fee much lower than that paid to your onsite staff.
You can cut salary costs by up to 70%. If your total salary costs are $1 million annually, you could save up to $ 700,000 annually. While a virtual assistant does the mundane work, your onsite workers can focus on their core tasks. You gain the maximum from your employees, increasing their efficiency and productivity.
How to cut costs?
Besides the massive savings you can gain when outsourcing repetitive work, there are other benefits: you do not need to spend on a workspace, which means no computer or printer hiring costs, no large office to hire, no stationery costs, and no office treats, such as coffee and other items to keep in the company kitchen. Such may not seem costly; however, these costs accumulate over time.
What’s next?
Decide what you want – save money or waste money? After all, you become an entrepreneur to be independent, not to work for yourself. You cannot accomplish everything on your own. You need help! Then again, employees can be costly. You want to make the best use of them after hiring them while they are still there. Outsourcing is the staffing solution for those repetitive tasks you and your core staff can do without focusing on your work. Contact us! Best book your free consultation and let our expert discuss the solutions available.
We also recommend a course by Mads Singers − Effective Management Mastery course. Learn how to manage people, hire great people, and learn how to dismiss staff. Most importantly, I know how to delegate work. You will find yourself on your desired path to success.
3 Key Takeaways
The three key takeaways of the article are:
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Employee turnover can be expensive and crippling for businesses. It can lead to loss of productivity, shared business secrets with competitors, and high costs associated with hiring and training new employees.
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Outsourcing tasks to virtual assistants or remote workers can be a cost-effective way to reduce employee turnover. This frees up skilled employees to focus on their core tasks, increasing their satisfaction and productivity.
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Outsourcing can save businesses money on office space, equipment, and supplies. This can be a significant benefit for small businesses and startups.