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<v Speaker 1>Helping leaders motivate their people to a higher level of

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<v Speaker 1>performance through strong human relations, team building, and Goala giving.

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<v Speaker 1>This is the seven Minute Leadership Podcast with your host

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<v Speaker 1>Paul Fellavaledo.

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<v Speaker 2>Hello everyone, and welcome to this seven minute leadership podcast.

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<v Speaker 2>It's episode seven seventy nine. Today we're talking about something

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<v Speaker 2>that quietly drains organizations every single day. The title of

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<v Speaker 2>this episode is Retention Costs you never calculated. When leaders

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<v Speaker 2>talk about employee retention, the conversation almost always lands on salary.

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<v Speaker 2>We can't afford another rays, we're paying market rates. They

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<v Speaker 2>left us for more money. Sometimes that's true, many times

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<v Speaker 2>it isn't. The real cast of poor retention goes far

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<v Speaker 2>beyond payroll, and many of those costs never show up

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<v Speaker 2>on a spreadsheet. They're hidden inside your culture, your customer's experience,

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<v Speaker 2>and the performance of the people who stayed behind. Think

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<v Speaker 2>about the employee who resigns after five years. You know

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<v Speaker 2>you'll have to recruit someone new. You know you'll spend

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<v Speaker 2>money on job postings, interviews, uniforms, equipment, onboarding and training.

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<v Speaker 2>Those are obvious expenses. The expensive part begins after that.

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<v Speaker 2>Your experienced employees knew the shortcuts. They knew the customers

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<v Speaker 2>by name, They knew where the problems usually started. They

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<v Speaker 2>solved little issues before they became major ones. And now

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<v Speaker 2>that knowledge walked out the door. Now your team starts

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<v Speaker 2>answering questions that never had to be asked before. Mistakes

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<v Speaker 2>become more common. Simple tasks take longer, Customers notice, Coworkers

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<v Speaker 2>become frustrated because they're carrying extra weight while the new

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<v Speaker 2>employee learns the job. The organization becomes slower without realizing why.

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<v Speaker 2>And here's another retention cost. Many leaders never calculate the

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<v Speaker 2>emotional tax on the employees who remain. Every resignation creates uncertainty.

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<v Speaker 2>People start asking themselves questions, why did they leave? What

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<v Speaker 2>did they know that I don't? Should I be looking

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<v Speaker 2>somewhere else? One resignation rarely stays isolated. It plants seeds.

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<v Speaker 2>Those seeds become conversations. Those conversations become doubt. Doubt becomes turnover.

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<v Speaker 2>Then there is leadership time. Every vacancy steals hours from supervisors.

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<v Speaker 2>Scheduling becomes harder, Interviews take time time, Training requires attention.

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<v Speaker 2>Performance coaching increases. Instead of improving the organization, leaders spend

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<v Speaker 2>their days filling holes in the organization. That's expensive. And

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<v Speaker 2>here's one that rarely gets discussed. Innovation slows down. Experienced

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<v Speaker 2>employees challenge bad ideas because they know the operation. New

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<v Speaker 2>employees often don't. If your workforce is constantly turning over,

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<v Speaker 2>fewer people have enough experience to recognize problems before they happen.

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<v Speaker 2>Your organization becomes reactive instead of proactive. Retention affects safety too,

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<v Speaker 2>Whether you're running any MS service, a manufacturing plant, a

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<v Speaker 2>retail store, or a software company, experience reduces risk. Experienced

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<v Speaker 2>employees recognize warning signs faster. They know what doesn't look right,

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<v Speaker 2>they speak up earth That instinct isn't found in an

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<v Speaker 2>employee manual. It's earned over time. Poor retention resets that

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<v Speaker 2>clock over and over again. And here's another hidden cost. Reputation.

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<v Speaker 2>The employment market is surprisingly small. People talk, former employees talk,

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<v Speaker 2>applicants talk, Customers notice familiar faces disappearing. Your reputation slowly

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<v Speaker 2>becomes people don't stay there. Once that perception develops, recruiting

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<v Speaker 2>becomes dramatically harder. Now you're spending more money trying to

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<v Speaker 2>convince people to work somewhere that others are trying to leave.

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<v Speaker 2>That's a difficult position to recover from. So what's the solution.

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<v Speaker 2>Retention isn't built with pizza parties, It isn't built with

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<v Speaker 2>motivational posters, it isn't built with corporate bs or corporate jargon.

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<v Speaker 2>Retention is built through everyday leadership. People stay because they

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<v Speaker 2>feel respected, They stay because expectations are clear, They stay

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<v Speaker 2>because someone notices their effort, they stay because problems get

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<v Speaker 2>addressed before they become unbearable. And they stay because they

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<v Speaker 2>believe tomorrow will be better than today. That belief comes

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<v Speaker 2>directly from leadership. So here's a challenge for you. The

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<v Speaker 2>next time someone resigns, don't immediately ask why they left.

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<v Speaker 2>Ask yourself something deeper. What invisible costs is this resignation

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<v Speaker 2>about to create that won't appear on our financial statements.

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<v Speaker 2>You'll probably discover the answer is much bigger than replacing

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<v Speaker 2>one employee. Retention is not an HR metric. It's an

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<v Speaker 2>operational strategy. It's a customer experience strategy, it's a financial strategy,

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<v Speaker 2>and most importantly, it is a leadership strategy. The organizations

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<v Speaker 2>with the strongest cultures aren't always the ones paying the

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<v Speaker 2>most money. They're the ones creating an environment where talented

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<v Speaker 2>people can't imagine working anywhere else. That's the retention calculation

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<v Speaker 2>every leader should be making as you move through your

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<v Speaker 2>leadership journey this week, look beyond the obvious costs inside

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<v Speaker 2>your organization. Sometimes the biggest expenses are the ones accounting

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<v Speaker 2>software never records. Invest in your people before you're forced

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<v Speaker 2>to replace them. The return on that investment is always

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<v Speaker 2>greater than you imagine. And if you want more free

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<v Speaker 2>leadership resources, head over to Paul fallavalito dot com and

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<v Speaker 2>click on free Stuff. I have over twenty five free

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<v Speaker 2>leadership documents you can download and start using today. This

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<v Speaker 2>has been the seven minute Leadership podcast and I thank

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<v Speaker 2>you for listening.

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<v Speaker 1>For more Paul Fell of Alito Podcasts, visit paulfellowalito dot

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<v Speaker 1>com