How Employee Retention Influences Client Retention

by Kate Neri | Feb 14, 2023

There is an inherent connection between employee retention and client retention. 

If client retention is one of your top priorities this year (read why it should be here), then employee retention should be right there with it. As leaders, we have to prioritize both.

How retaining employees directly impacts client retention

It’s no secret that high employee turnover rates have a severe impact on your business and its prosperity. From the time and resources spent searching, recruiting, hiring, and training new employees to the loss of productivity and efficiencies being short-staffed and in transition, to diminishing employee morale – this all has an impact on your business.

Here are 3 ways employee retention influences our client retention:

  1. Stronger client relationships – Employee-client relationships are real and resilient. The more stable and consistent these are, the more trust is built and the longer clients stay. 
  1. Healthy culture – A healthy work environment leads to camaraderie, encourages teamwork, and drives innovation – all things that ultimately affect the work your team produces to serve your clients. Healthy culture leads to healthy client retention.
  1. Valuable institutional knowledge – The longer your team works together and for your clients the more data, information, experience, and knowledge they gain. This can then be applied to improve and optimize the work for your clients. 

Client and employee retention are intimately intertwined and positively correlated. As one improves, so does the other, so it would behoove us as business owners and leaders to prioritize both.

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 by Kate Neri

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