Retention Is the Secret to Sustainable Growth

Replacing staff who leave a role can cost up to twice their annual salary, depending on seniority. This obviously means that holding on to high-performing talent is a business necessity - and it’s something clients expect to be able to do. If we recruit for a role and the new hire leaves rapidly, our reputation with that client will be damaged.

Recruiters understand the negative impact of high employee turnover for their clients, but the economic impact is just the same for roles within recruitment. In 2024, the job turnover rate in the US was 3,2%, according to RampedUp.

And yes - replacing a salaried employee still costs between 50% and 200% of their annual salary. This includes not only the cost of hiring and training, but also the hidden losses: productivity gaps, loss of client trust, or morale dips.

Progress can feel out of reach if you must continually replace 1 out of every 4 hires. So how can you retain your recruiters and grow your business?

1. Have a Great Onboarding Process

Create a process that involves regular, open and honest feedback and appraisal. This will allow the new hire to reflect on their performance and make changes to improve, plus to feel appreciated when they pick something up quickly.

In fact, great onboarding can improve retention by 82% — making it one of the most strategic investments a business can make.

2. Set Clear Objectives

No one can do well in a role if they don’t know what that role is or how to succeed at it. Unclear objectives mean the employee is doomed to fail before they begin - and if they’re failing, they won’t be enjoying the role or wanting to stick around.

They need to have clear, realistic, role-specific objectives. Lack of clarity also damages the relationship between recruiter and manager.

3. Hire the Best People

It may not be as simple as it sounds, but don’t just hire people like you, or people you like. You won’t find the best people for the role, and those who aren’t suited won’t hang around for long.

A diverse team produces better business results, and more companies are waking up to that: in 2024, 68% of companies used data-driven hiring strategies to improve match quality and retention.

4. Assess Candidates as Part of the Recruitment Process

Assessing candidates before they start ensures they have the right profile for the role and are intrinsically suited to its demands. This means they will be less likely to move on due to dissatisfaction.

Insights from assessments can also be used to create individualised onboarding or motivation strategies.

5. Create the Right Culture

All organisations have different quirks, but your culture should be helpful and cooperative so that employees feel able to show weaknesses and ask questions to improve themselves.

Creating a taboo around failure doesn’t stop people failing - it just makes them good at hiding it, scared of asking for help to progress, and more likely to look for another opportunity.

6. Have Career Progression Plans

Some recruiters want to become managers. Others want to stay recruiters because it’s what they love. Progression doesn’t have to mean a change of job title - consider how to reward your employees for establishing and developing their client base or taking on more responsibility.

Be open to internal mobility so staff can be challenged in a new sector. If employees can see how they’ll be challenged and have goals within the company, they’re less likely to look elsewhere.

Final Thoughts

Retention isn’t just a feel-good metric - it’s the foundation of any sustainable business strategy. The cost of replacing people, especially in competitive industries like recruitment, is too high to ignore.

With updated systems, clarity, flexibility, and a culture that supports real growth, businesses can hold onto top talent and build momentum - instead of constantly starting over.