Employees are a business’s most valuable asset. Employers spend a lot of time and money to recruit qualified talent. According to a study by Glassdoor, the average U.S. business spends around $4,000 to hire a new employee, taking up to 52 days to fill a position and 8 to 26 weeks for a new employee to reach full productivity.
While the cost of hiring is high, the cost to replace an employee is even higher. The Work Institute’s 2019 Retention Report estimates that the cost of a lost worker is $15,000. According to that same study, 77% of the reasons employees left could have been addressed and resolved by the employer.
Yet many employers don’t have a retention strategy.
Enter the business resource network
A business resource network (BRN) is a group of employers that pay the wages of a success coach whose sole purpose is to address issues that impact employees’ attendance and performance. Member employers who address common barriers such as transportation, child care, education and financial literacy have reported an average retention rate of 85 percent.
The Retention Solutions Network (RSN) @West Michigan Works! is a BRN that serves employers in West Michigan. Trained success coaches provide customized, on-site assistance including financial planning, coaching and connections to resources.
“I feel valued.”
Employees are often referred to RSN by the human resource department. In the following example, an employee was referred because of recurring debt due to family medical expenses.
The success coach assisted the employee with the process to qualify his child for medical services from the state. She worked with the employee on a budget plan to pay off outstanding medical bills. Third-party funding was used to pay overdue auto insurance, allowing the employee to completely pay off the medical debt.
According to the employee, “It makes me feel valued that my employer cares enough about staff to bring a success coach in.”
Added benefit
DeWys Manufacturing is a Retention Solutions Network member. “The RSN services have been a huge addition to the benefits we offer,” said Laura Elsner, workforce development manager at DeWys. “It’s on-site and free of charge to employees, but can be life-changing. We have had so many great responses from team members.”
Learn more about the Retention Solutions Network.