Business has changed dramatically since the last century. Every generation has its habits and work preferences and today’s generations are much different than those back in the 20th century.
The boomers preferred one job for their entire job. Millennials prefer often job changes, while Gen Zs love working remotely. With all these facts, a business owner must understand that it’s crucial to know their employees and try to meet their demands so they can have them happy in and outside the office.
But, why is it important for businesses to have happy employees? Wouldn’t it be more logical to sack those who are not satisfied with their job and get new ones? Not! Employee retention is crucial for having a stable and successful company. Learn more about retention here.
In this article, we’re going to explain why it is so important to have happy employees, what it means to constantly change them, and everything around this issue. Follow up if you want to know more details about this topic.
1. A happy employee is productive
Many countries in Europe, and especially in Scandinavia, introduced the 4-day working week. Their employees are the happiest ones in the world, and their productivity since then raised to an entirely new level never seen before.
That explains perfectly how important the worker’s happiness is. Happy workers are productive and they are going to spend most of the day dedicated to their job and assignments. They will be doing everything they need to do to finish their tasks, and with it, raise the success of the company.
After all, it’s crucial to have everyone achieve a perfect work-life balance, and if they are not happy at work, they won’t be happy outside of the office too. Having them satisfied behind the desk is good for everyone, so why not do your best as a manager?
2. Productiveness drives the company forward
Although many managers and owners of businesses think that their actions are the ones that drive the company forward, this is not true. The actual drivers of businesses are lower lever employees. Their dedication and motivation are crucial for the success of every firm.
If they do their job properly, everyone will soon get to a perfect place. If the lower levels of employees are not productive, there will be mistakes, delays, and unsatisfied clients. This is why the main job of managers is to keep their employees motivated and happy.
Doing this means that workers will be productive and will do everything in their power to see the joint business successful. If they are not, then the entire company will slowly deteriorate until it completely shuts down.
3. Constant layoffs ruin businesses
It’s much wiser to have a team of people working long-term with you, than constantly laying off to replace them with others. Aside from the money you’re going to lose, retention provides a much better working environment for everyone.
A person working for the firm for more than six months will know everything about the business. They will be dedicated, loyal, and understand what is needed for the workflow to be driving normally. If you let this person off, the new person will need time to start doing the same and the cost of employee retention is going to go through the roof.
This is devastating for every firm, and that’s why it’s crucial to dedicate more attention to retention than constantly looking for someone who’s going to be better and ask for a lower salary. Appreciate the people you have in your office.
4. You can’t buy loyalty
Some managers think that paying more to their employees will buy their loyalty while they treat them like garbage. This is completely not true. Research shows that money is not on top of the list when it comes to deciding to quit. On the other hand, not being satisfied with the atmosphere is on top of this list.
Loyalty is one of the most valuable features that one employee can have. However, it’s not easy to get it, and you should know that offering more to people is not going to keep them in your firm. Make sure you treat your employees with respect rather than offering more money.
5. Losing employees is expensive
Maybe one of the most important things, if you look at this issue from a short-term aspect, is that it is expensive to replace an employee. Seeing the stats, it is obvious that the cost of employee retention is much lower than actually getting a new one. See more about this here: https://www.forbes.com/sites/johnhall/2019/05/09/the-cost-of-turnover-can-kill-your-business-and-make-things-less-fun.
The cost of getting a new employee will result in huge expenses for waiting for this employee to line in with the rest of the team and the training needed for it. Stats show that an employee with a salary of more than $60,000 will result in up to $35,000 expenses. Now imagine what it means to constantly change workers in the office.
