Do you feel like you’re constantly trying to fill back office positions vacated by employees? Or, even if it hasn’t been that often, you likely know the pains caused by losing someone unexpectedly on your team. Back office turnover can lead to some negative consequences, like a loss in productivity and low morale.
It can also come at a heavy price. When a Millennial employee quits today, it’s estimated to cost companies between $15,000 and $25,000. This number can be more or less, depending on the time it takes to hire, increase in the new employee’s salary, training time, and more.
If you’re worried about back office turnover, ask yourself the following questions. You’ll be able to gauge the impact of turnover in your company, and learn some strategies that can help you get your team back on track.
Honest Questions to Ask About Your Back Office Turnover
1. How Often Does This Happen?
How regularly does your business face the problem of back office turnover? Hopefully, it’s once in a while. But for many companies, turnover is regular, creating consistent chaos. If it’s often, you need to take a hard look at the reasons behind turnover and determine why this is happening.
To slow down turnover, consider bringing in a third-party provider. When it comes to your back office — bookkeeping, payroll, HR — a remote provider can help you cut down on frequent turnover. Even if a member of your remote provider’s team leaves, they have resources to fill the role seamlessly, so your business operations are uninterrupted.
2. How Long is the Gap Between Employees?
No business can afford to keep back office positions empty for long. The longer it takes to fill roles empty due to back office turnover, the lower your productivity will be. According to one study by the Society for Human Resource Management, employers usually spend about six to nine months of an employee’s salary to hire and train a replacement.
Even when the gap is closed and you’re onboarding a new employee, it takes time for them to get up to speed and have an in-depth understanding of how you do things. And, there’s no guarantee they won’t end up leaving too, only to put you right back where you started.
Working with remote providers means working with a team that has your back, knows your business, and won’t leave you with any lapse in back office work. Again, if someone leaves, your business won’t be affected, and any transition will happen in the background.
3. Are You Filling Positions That Don’t Require Full-Time Employees?
It’s important to take a hard look at your back office and determine whether or not the positions you’re filling really require full-time employees. Perhaps your business doesn’t actually need an in-house employee fulfilling bookkeeping, accounting, and HR responsibilities.
With remote providers, you won’t need to replace full-time employees performing back office functions. You can outsource these tasks and still get the level of expertise you’re looking for. Plus, as your business grows, remote providers can easily scale their services to meet your needs, while eliminating back office turnover.
4. What is Morale Like?
One of the areas where back office turnover can have the greatest impact is company morale. High turnover can lead to gossip, unhappy or anxious employees, and distrust in the company.
What’s the feeling like at your business? Are employees happy, or looking for other jobs? When you outsource back office work and cut down on turnover, you’re sure to see a vast improvement in the mood and morale in your company.
As you ask yourself the questions above, it’s important to take an honest look at your business. Back office turnover can have a huge impact on your success, so it’s vital that you address this issue — and address it quickly.
The answer to your back office turnover problem could be partnering with a remote bookkeeping, accounting, and HR services partner like Keeping Your Balance to take on these roles in your business. You can mitigate the loss of productivity and the negative impact on morale. And, your business will be primed for growth.