What Could Happen If You Are Not Able to Retain Your Good Staff?
The importance of retaining your good staff is so important that many business owners failed to realize how it will impact their business growth. What will happen when you good staff moves to another company due to some reasons?
The after effect of your good staff leaving:
1) Existing Clients Exodus – Many clients who are very closed with your staff will probably be moving away from your company and continue to use the same person regardless of which company he or she goes to. (Assuming that he or she goes back to the same industry) Please do not tell me about any contract clauses saying that the ex-staff cannot service the old clients because in this free society, a client can freely choose any vendors they preferred.
2) Opportunities Lost – Even though the clients may still stay with the company, the next person taking over will need time and resource to build rapport with the existing clients and there is a possibility that the new staff may not be able to build the same rapport with the existing clients, hence potentially this group of clients will be gone after some time.
3) Training Cost – With new staff coming in, there will be a need of orientation and training. Such kind of resource will involved in time and money, of course, such cost will always be at the expense of the company. During the training and orientation, the potential sales of the existing client will be almost ZERO, with that, the overall losses is quite significant and damaging.
4) Dipped On the Team Morale – In the event your good staff leaves, those people who are close to them will feel the stress and heat and 2 question will come to their mind. Why didn’t the company ask him or her to stay since they are good staff? Why did the staff leave, is there potentially any problem with the company? They fellow colleagues will NEVER ask whether the staff who is leaving has any problem because they TRUST him 100%, hence, it automatically narrow down to the question of something could be wrong with the company and the question is – WHAT IS WRONG WITH THE COMPANY. With that, trust level will go down and could lead to a few more people leaving the company in time to come.
5) Hiring Cost– To hire new staff there will be some cost involved, even posting a free advertisement in the internet will still involve in time usage and even filtering, interviewing and selection itself will still need time, this will cost plenty of man hours lost. Let say that the position is a much higher management position, this will take even more time, effort and money to get a replacement because generally it will be tougher to find such kind of people.
6) Lowering of Internal Branding – This may not be very obvious but when someone were to leave a company, especially a good staff, many people will feel uncertain about what had happened unless the management is able to share the reasons with the existing staff, however, the problem is that such kind of explaining may not be effective if the trust level between the staff and the management is not high. It could lead to backfire if it is not handle properly. At such, people who are loyal to the company could be shaken if good staffs leave and hence the overall internal branding will be lowered without even the management knowing what had really happen.
7) Loss of Revenue – If your staff is a direct person involving in the revenue of the company, there will be a potential loss of revenue as existing client may not be very keen to entertain the replacement. At least 50% of the revenue this staff is handling could be lost!
Hence, if you have a good staff that you know that could potentially leave a company, you will have to find ways and means to make him to stay at all cost. I will touch based on how to retain good staff in another article.
Good luck and be good to your great staff!