An effective employee retention strategy is crucial for skilled labor and service industries, as it can help reduce turnover and increase productivity.
One effective retention tool for these industries is a Supplemental Executive Retirement Plan (SERP), which can provide long-term financial security for key employees and give them an added incentive to stay with the company.
One of the most important benefits of an effective employee retention strategy is that it can reduce the cost of turnover. Recruiting and training qualified replacements can be costly to a business. The cost can be even higher for skilled labor and service industry employees, as it can be challenging to find qualified candidates to fill those roles. According to a recent survey by Ducker Carlisle, an average dealership loses $172k in the first year after a service technician leaves. An effective retention strategy can lower these costs by keeping valued employees in place.
In addition to reducing costs, an effective employee retention strategy can also help to improve productivity. Skilled labor and service industry employees often require a significant investment of time and resources to train. When they leave, it can take a while for a replacement to reach the same level of productivity. By retaining key employees, a business can minimize disruptions and ensure a consistent level of productivity.
Furthermore, businesses in the skilled labor and service industry heavily rely on their employees’ skills, knowledge, and experience. Losing a skilled employee can create a significant gap in the company and be a considerable loss to the company’s operations and performance. Therefore, retaining skilled employees is especially critical for maintaining and growing the business.
As part of an employee retention strategy, a SERP can be a powerful incentive for key employees to stay with the company. A SERP is a type of retirement plan designed to provide additional benefits beyond traditional retirement plans such as 401(k)s or pensions. These benefits
include guaranteed payments, death benefits, and early retirement options. For skilled labor and service industry employees, the added financial security provided by a SERP can be a powerful incentive to stay with the company.
In addition to a SERP, there are other strategies businesses in the skilled labor and service industry can use to improve employee retention. For example, offering competitive pay and benefits, creating a positive work environment, and providing opportunities for professional development can all help to keep employees engaged and motivated to stay with the company.
Overall, an effective employee retention strategy, such as a SERP, is crucial for businesses in the skilled labor and service industry. It can help to reduce turnover, increase productivity, and ensure that the company has the qualified employees it needs to be successful in the long term. Businesses that invest in retention strategies will be better equipped to compete and grow in their respective industries.
If you’re looking for retention solutions for your business, let’s talk!
