Have you ever looked up from your desk to see mainly staff who have been at the company for less than 2 years? Unless you’re a recent start-up, things aren’t looking too good. Employee retention indicates a healthy, sustainable business, while high turnover points to some serious work culture and performance issues. Here are 7 reasons why employee retention is important and why you want to focus on this now.



1.Why employee retention is important to attract applicants


Potential employees often ask for how long the previous employee in that position worked at the company and why they left. Any red flags will be a drawback when they decide whether to join your team. 

Inversely, applicants will be drawn to a business that works hard to retain their staff. They will be able to envision their own potential growth when they have examples of employees who have evolved over a long period of time. By hearing examples of staff who appear to be happy and thriving, they’ll be more likely to take that leap of faith to start a new job at your company.

Potential employees want to work for a company that people want to work for. It’s critical to remember this when you’re trying to hire the best talent over your competitors, which is why employee retention is important. Applicants will want to know what makes people stay with your company. What’s your magic sauce?


2. Loss of time and resources with recurrent hiring


When you watch your staff walk out the door, you see your investment go out with it. Training, orientations, onboarding, and on-the-job training all take significant time and resources. 

Hiring and onboarding new staff over and over again take up staff time that could be used much more effectively. New staff naturally make mistakes and need time to work efficiently. There is a great loss of productivity with recurrent hiring and the impact on current staff stress levels is very real.

To get the best return on investment, hold onto and invest in your staff. You have already spent company money on their training and professional development, so use that to your advantage. Continue to invest in their learning and growth, and they will continue to help your business grow.


3. More skilled, resilient, and dynamic workforce


The longer your staff stay at the company, the more skills and experiences they have to contribute. Employees with a variety of skills can help with those late nights, short deadlines, and unexpected hurdles like a software glitch or failed delivery.

Staff with significant company experience will be more confident and capable of taking on new challenges and facing big changes head-on. If you have a new client who needs extra care and attention, you can turn to a tenured staff member who has the experience and skillset to knock it out of the park.

Employees will also be more likely to go the extra mile and remain loyal to the business if they feel valued and supported with a team they know and trust. Having that comfort and ease within a team, employees are then able to navigate complicated projects or tricky customer relations. Without that trust, you stand to lose staff members and, potentially, clients.


4. Indication of healthy, resilient business


That idea someone tried out 5 years ago that failed miserably? You already have someone on staff who remembers these mistakes and can help you to avoid them by saving you time and resources.

It takes time to know your products and services and to build knowledge of customers. You don’t want staff to spend time training new staff over and over again, and neither do your current staff. You want them focusing their energy on helping your business grow and stay relevant. 

The only way to do that is to build institutional knowledge. Employees who know your product and services build a reputation for quality and consistency. 

Newer staff are eager for mentorships to further their professional development. Experienced staff can provide that relationship thanks to their tenure and expertise, and they will feel recognized for their talent. It’s a win-win situation for everyone.


5. Why employee retention is important for employee morale


Have you ever worked for a business with high turnover? It doesn’t feel great. Everyone feels nervous about more changes and departures, trust amongst employees erodes, and morale is low. 

When another departure is announced, people worry about the impact on their workload and the time it will take to find and onboard replacements. Productivity takes a real hit, as it is hard to get much done when you’re wondering who will leave next.

Staff retention builds morale and a sense of camaraderie and community. People want to look forward to coming to work and connecting with their coworkers. And happy and engaged staff will work more effectively. Your customers will notice too, which is why employee retention is important!

Ask your staff about their frustrations, and work with them to remove obstacles. A few simple changes can do wonders for creating some positive energy in the workplace. And those more complex frustrations will be worth working through so you can retain your talented, trusted, and valuable employees, which is why employee retention is important.


6. Impact on company brand and reputation


Word of high turnover can really hurt your company’s brand and reputation. Thanks to businesses like Glassdoor, it is easy for applicants to learn about a company’s struggle with staff retention. It’s also very hard to change that reputation.

Customers and partners will notice frequent changes in staffing, which can lead to frustration and miscommunication. This can greatly impact your customer service and trust in your brand. People will wonder why there is such high turnover and that’s when the rumors get started.

With high staff retention, potential applicants will be eager to learn why you’re such a great company to work for. You want to be in the drivers’ seat when it comes to attracting the best talent to move your company forward. Recruiting just gets that much easier.


7. Why employee retention is important as an indication of a heathy, resilient business


If you’re able to retain staff, it’s a good sign you’re doing things right. Employees want to invest their time and professional growth with you. Your company is better able to deliver consistent, quality products and services. 

Staff feel respected, valued, and heard. With open communication, staff are better able to work through conflict and express frustrations before taking their talent with them to your competitor.

With an experienced and resilient workforce, your business will be better equipped to ride any waves. And you can focus on bigger picture ideas knowing your staff has got your back.



People naturally make changes throughout their professional career. But you don’t want to be known for the business with high turnover and frequent hiring of the same positions. 

Staff retention is crucial for the health and sustainability of your business. Employees are able to focus on getting the work done, not wondering who is leaving next or looking for jobs with your competitor, which is why employee retention is important.

Employees stay because they enjoy their job, they feel respected and recognized, and they continue to learn and grow. Your business will too. 

And you can look up from your desk to see numerous staff who continue to share their gifts, talents, and expertise with your business every day. 

Judson Kleinman

About Judson Kleinman

As the founder and CEO of Corporate Essentials, Judson set out with every intention of bringing a new meaning to the words "office culture". As leaders in the industry, his company constantly sets the bar by investing in, and improving their product offerings, technology, people and training. 20 years and 1500 clients later, Judson can proudly say that Corporate Essentials continues to positively fuel culture and allow over 150,000 employees to work happy.