Staff attrition hits SMBs hard, employee retention vital

Monday 3 December 2012

Small and medium-sized businesses (SMBs) must do all they can to retain key employees, it has been suggested.

Writing for the Toronto Star, Andrew Seale claimed that small firms are likely to suffer in particular if someone leaves after a long period of time.

He said that while larger companies can cope by moving people resources around and recruiting a replacement, this is not always as easy for an SMB.

Mr Seale claimed that staff attrition creates a number of problems - including reduced morale for people left behind, who may face more work as a result.

Business productivity is almost certain to be affected, as the replacement worker is unlikely to be as efficient as the individual who left.

If they held their job for a number of years, it is likely they could get far more done than a new starter in any one working day.

Another problem, Mr Seale noted, is increased training and onboarding costs.

New hires need to be brought up to speed, and this may involve a significant amount of development work before they reach the same standard as the previous incumbent.

Mr Seale added that the need to recruit a new member of staff is also likely to pull the SMB boss away from their daily responsibilities.

Posted by Alex Boardman