Are you making these 10 Critical Retention Mistakes?


Poor retention can cost  your company thousands and even millions of dollars each year. However, what if you could prevent this loss by tackling some of the most common mistakes? Read on to discover if you’re making any of these 10 critical retention mistakes and create strategies for solving them!

Mistake #1. Hiring the wrong employees. Jack Welch, former CEO of GE said “The team with the best players wins.” However, most managers aren’t formally trained to hire new employees. This puts you on the path to high turnover. CERS offers an interesting program to help!

Mistake #2. Not driving retention from the top. Improve your retention starting with top executives. Andy Cohen, CEO of CERS, explains, “Inspect what you expect and that’s what your team will respect.” Include turnover costs in your annual report, strategic planning and monthly reports – and create rewards for meeting goals.

Mistake #3. Not correcting a fear based work place. Fearful employees can’t boost your bottom line. In fact, they can hurt it. Look for symptoms of a fear based workplace, such as distrust of rules and total obsession with metrics. Then, employ strategies to correct the issue to boost retention.

Mistake #4. Misunderstanding employee engagement. An engaged employee is offered competitive pay, recognition for success and training opportunities. They also have senior leaders who are listening and dedicated to forging good relationships.

Mistake #5. Not holding supervisors accountable for retention. Are your supervisors accountable for retention? Studies suggest the majority aren’t. However, retention goals that are weighed equally with other goals, such as productivity, offer excellent results.

Mistake #6. Not using an employee referral program. These programs give you the inside track on great employees. Some companies have reduced hiring costs by as much as 75 to 90 percent, using employee referral programs, according to the HR Florida Review.

Mistake #7. Failing to provide clear direction and goals when hiring a new employee. What do you expect from your new employee? And, more importantly, have you clearly communicated your expectations AND ensured the employee understands them. Many times a hiring manager thinks they communicated expectations; however, the new employee interprets the instructions differently.  Communication issues kill retention.

Mistake #8. Reacting to problems too slowly. Handle small problems quickly so they don’t fester and turn into large expensive problems.

Mistake #9. Not listening to employees. Bosses might be the prime reason why most employees leave, according to a survey conducted by Florida State University. 40 percent of employees reported they worked for “bad bosses.” How often do you meet with new hires? And, have you asked them how they could improve an existing process? You might be pleasantly surprised with a fresh perspective.

Mistake #10: Shifting focus from talent retention to cost reduction. During economic turbulence, many companies shift their focus from retention to slashing costs. However, the first employees to leave during tough times are usually your top talent. This leaves a team full of “C” players; negatively affecting your bottom line.

Stay tuned, for valuable information in the weeks ahead! We’ll address some of the most important issues that face your company. Are you signed up for our blog yet? Don’t miss out, subscribe, and we’ll deliver this information conveniently to your inbox. Simply subscribe to our RSS feed today!


HR Florida Review. Avoiding the Six Dangerous Retention Mistakes Most Companies Make. Retrieved 9/11/12 from

The Florida State University. Who’s Afraid of the Big Bad Boss? Retrieved 9/11/12 from



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