The Correlation Between Profitability and Employee Retention

  • 05 Dec 2017

2018 is going to be a positive and dynamic year for tech in DFW.

DFW’s Tech Industry Is Uniquely Poised

A recent CBRE report showed that the growth rate of new tech jobs in the DFW area was 12.5 percent from 2015-2016, versus 10.8 percent in 2013-2014. Dallas Ft. Worth is an industry-diverse vertical market. For that very reason, DFW can sustain economic growth, and it’s why our tech industry is different from those in other markets.

“By jobs alone, however, DFW ranks as the fifth largest tech labor pool in the country with a total labor force of 161,150”. -CBRE’s annual Scoring Tech Talent report

How Can Your Business Thrive?

My answer is simple.

In order for your business to fully participate and thrive in this competitive yet bountiful time you need to do two things:

1. Invest in your people by doing the right things to retain key players.

2. Don’t take shortcuts in hiring.

The Impact of Hiring Right

There is a definite correlation between profitability and employee retention and how performers drive organizational success.

Various studies have evaluated the effect employee engagement (or deficiency in that department) has on organization revenue:

  • Companies that have engaged employees outrank those with the disengaged employee by 202 percent reports Dale Carnegie Training.
  • Towers Perrin estimates that highly engaged employees boost a company’s net profit margin by 6 percent.

Effects of Poor Hiring

The effect of employee disengagement on the profitability originates from a few elements, including poor hiring and soaring turnover rates that mean escalating hiring costs; poor customer connections that promptly lost revenues.

The 2017 State of the American Workplace Report from Gallup reports that employee’s disengagement costs U.S. businesses between $450 billion to $550 billion annually because of poor productivity.

“U.S. businesses lose approximately $11 billion annually due to employee turnover, according to the Bureau of National Affairs… The ability to engage and retain valuable employees has a significant impact on an organization’s bottom line.”

To sum it up, there is a direct correlation between profitability, employee retention and how performers drive organizational success. Make the most of your hiring strategy and start the new year off on the right track.

Rob McIntosh, founder of McIntosh Search, leading talent acquisition firm serving the DFW area, helping Technology Leaders build strong IT Teams.

At McIntosh Search, we fully understand the correlation between profitability and employee retention and how performers drive organizational success. Learn creative ways hiring the right talent can lead to sustained and impactful growth. We are here to speak with you and discuss how our approach produces long-term measurable results.

Interested in learning more about building and sustaining leaders and the impact of improved communication on your team? Contact Rob McIntosh, at ☎ 214-521-2900, or email