Harvard Business Review’s Answer Exchange offers helpful tips on the importance of retaining employees:
- When employees leave, your company loses its knowledge and (often expensively) acquired skills.
- It costs a lot of money to replace defecting employees, reducing your company’s profitability.
- Those losses are compounded when employees go to work for competitors: Not only has your firm been deprived of an important source of value, your rivals have gained it — without having to invest lots of time and money in training.
- Customers who enjoyed working with defecting employees may follow them to competing companies.
- Colleagues of defecting employees may follow them to competing companies.
Originally posted on HBR Answer Exchange (now defunct); Adapted from the book Harvard Business Essentials: Guide to Hiring and Keeping the Best People, Harvard Business Press