There doesn’t seem to be an industry that hasn’t been affected by staffing shortages and the cost of losing an employee cannot be simply calculated in dollars. Typically, there are recruiting, onboarding, and opportunity costs associated with a new hire, but there are other factors to consider such as cultural impact and lost productivity.
Cultural impact- When an organization loses an employee, there is an inevitable shift in culture as personalities and interpersonal relationships adjust. Perhaps the employee left due to personal issues and the team will miss their upbeat, positive influence. Other times, the employee may take a negative outlook with them and that can be a welcome change as the rest of the team breathes a sigh of relief. Either way, finding the right candidate to fill a job opening must include a look at company culture and whether or not they will be a good fit with the existing team and social dynamic.
Lost productivity- After an employee is gone, others must step in and compensate for the staffing gap. Hopefully, a replacement is able to be found quickly, but if not, the entire team may suffer from increased workloads, longer hours, or picking up additional shifts. Across all industries, a reduction in employee turnover benefits the entire franchise by minimizing the period of lost productivity or burden sharing, which could ultimately lead to additional decreased employee satisfaction.
These, among others, factors indicate a clear need to track actionable data such as Employee Satisfaction and Retention. Making a point to track this KPI is beneficial to Franchisees, as well as Franchisors, as it can help identify opportunities for growth, while also recognizing achievement and sharing best practices/strategies. This is actionable data that may be currently overlooked, but unlocking and taking measured steps toward improving this data will lead to increased confidence in your future business decisions.
The Fran Metrics platform offers a solution to tracking employee satisfaction through custom employee satisfaction surveys that integrate into your monthly reporting, alongside your other KPIs for review. If you're already using a survey or other quantitative data, it can be utilized and retroactively linked to generate within your reporting to help identify potential trends and points of growth opportunity.