Staff Turnover | Decreasing employee turnover

Why Employee Turnover is the Achilles’ Heel of your Organization

Consider all this when an employee leaves your organization:

Costs of replacing the average employee is at least 21% of their annual salary due to direct costs (exit interviews, severance, unemployment tax, overtime or temporary staffing, recruitment, agency fees, employment testing, training and orientation). What is not counted are indirect costs (lost productivity due to short staff and reduced morale, costs incurred due to errors of new employee, lost clients, loss of historical/organizational knowledge)

Rentention

There is a balance or a correlation between compassion and achieving results. It is impossible to have results when your turnover is constant or high. A recent study by Willis Towers Watson showed that more than 50% of all global organizations have difficulty retaining their most valued employees.

Turnover

And the financial cost is 20-200% of the salary of the departing employee. It is an epidemic how much turnover is in certain industries. Or another way of looking at this is why would anyone work for an industry that has more than 50% annual turnover?

Finding Balance

In my past corporate roles, I had the lowest staff turnover in an industry with 20-40% annual turnover. The key was being that fully present leader who was kind, selfless, confident and striving for results with an informed and supported team.

Costs are disproportionately higher for executives, which run up to 213% of annual salary.

The cost to provide retention strategies average less than 10% off annual salaries.

The global talent shortage is now the highest in 10 years making replacement even more difficult with an overall loss in production for the organization.

More employees leave voluntarily (20%) than are terminated (16%).

In 2016 the median length of time employees stayed with their employer was 4.2 years. This is expected to shorten due to competition for talent and unfulfilled staff expectations.

Over 75% of voluntary turnover is preventable.

33% leave due to lack of career development or the job not matching expectations

21% leave for better opportunities to learn or be challenged

12% due to lack of work life balance

The revolving door of employee turnover can be managed into retention. In fact, retention strategies cost less than 10% of each annual salary. In addition to the down productivity time, turnover is likely costing you 20-200% of each annual salary that you replace.

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Staff / Employee Turnover

Why Employee Turnover is the Achilles’ Heel of your Organization

Consider all this when an employee leaves your organization:

Over 75% of voluntary turnover is preventable.

The revolving door of employee turnover can be managed into retention. In fact, retention strategies cost less than 10% of each annual salary. In addition to the down productivity time, turnover is likely costing you 20-200% of each annual salary that you replace.

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