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At Kerry Lehane & Co we know losing a valued employee is more than just an inconvenience. It can have a serious financial impact on your business. From the expense of recruiting a replacement to the loss of productivity and institutional knowledge, high employee turnover can erode profits and disrupt operations. Understanding the true cost of turnover is the first step in protecting your bottom line.

Breaking Down the Costs
When an employee leaves, the costs start immediately. Recruitment expenses such as advertising, agency fees, and the time spent interviewing candidates can be substantial. Once a new hire is secured, onboarding and training require additional resources before they are fully productive.

There are also hidden costs. While a role remains vacant, work may be redistributed among existing staff, potentially causing burnout or mistakes. New employees often take months to reach the efficiency levels of their predecessors, meaning reduced output in the short term. If the departing employee had strong client relationships, there is also a risk of losing business to competitors.

Why Employees Leave
Turnover is not always avoidable, but many departures are preventable. Common reasons include limited career development opportunities, lack of recognition, poor management, and uncompetitive pay or benefits. Workplace culture also plays a significant role, with employees more likely to stay if they feel valued, respected, and engaged.

Protecting Your Bottom Line
Reducing turnover begins with understanding what drives your employees to stay. Regular feedback sessions, employee surveys, and open communication can uncover concerns before they escalate. Offering competitive salaries and benefits is important, but so is creating opportunities for professional growth and advancement.

Investing in management training can improve leadership skills and create a more positive work environment. Recognition programmes, flexible working arrangements, and team-building initiatives can also strengthen employee loyalty.

The Long-Term Payoff
Retaining employees is far more cost-effective than replacing them. Lower turnover means reduced recruitment and training costs, stronger customer relationships, and a more experienced workforce. A stable team can focus on improving processes, delivering consistent service, and driving innovation, all of which contribute to long-term profitability.

By taking a proactive approach to retention, businesses can protect themselves from the financial and operational disruption caused by high turnover. Focusing on employee engagement and satisfaction is not just good for morale, it is a strategic decision that directly supports your bottom line.

If you would like to discuss your business needs. Call Kerry Lehane & Co Accountants on 023 8856054 or email info@kerrylehane.com

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