18 Jun How Stay Interviews Increase Revenue and Earnings
There are a number of solid reasons for employers to include stay interviews on their talent agenda. For some, it is because of the direct relationship between stay interviews and increased revenue and earnings for the company.
How does that relationship come to be? Is it real? The answer is “yes.“
1. What is a Stay Interview?
A stay interview is a one-to-one conversation between a leader and employee. In that interview, the leader tells the employee they are valued by the company and the company and leader wants them to continue being an associate. Having this conversation with regularity improves employee retention and engagement. That increase in retention and engagement drives higher revenue and profit.
“While a stay interview does bolster the relationship between a manager and his or her direct reports, employers embrace the interviews because they result in clear, measurable financial gains for the company.”
2. The reasons for stay interviews.
The purpose of a stay interview is to learn what can be done to retain the employee and identify concerns that may exist. This brief discussion brings out the key reasons an employee stays with the company – and why they might separate. Knowing this information, a leader can take action to address any concerns. As a result, employee retention and engagement improves. These reasons are always person-specific. Everyone has different desires. So stay interviews are a personalized way to improve employee engagement, retention, productivity and business results.
3. How does this process lead to increased revenue and earnings?
Consider these two ways:
- Greater Productivity. Employees who stay with the company are more engaged and productive at their job. This leads to higher quality of goods and services, increased customer satisfaction and customer loyalty, better service, more productivity, fewer defects, improved safety – all of which directly contribute to higher revenue and profits.
- Lower Turnover Saves Real Dollars. When employees stay with the company, the cost of turnover is reduced. This is a significant cost and includes: lower expenses for recruiting and hiring replacements for separated employees, less overtime while a replacement is found, a reduction in lost productivity while a position is vacant and until the new employee is proficient in the job. Turnover is a meaningful business expense; it lowers earnings. Controlling turnover through stay interviews saves money for the company.
Employers use stay interviews to achieve higher retention and engagement of employees. This leads to improved revenue and profitability.
HRsoft – The Stay Interview Software Leader
HRsoft is a leading provider of stay interview and employee retention software for mid to large sized companies in North America. To learn more about our Stay Interview System, STAYview™, click the button below!
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