Just saw a great piece about “the staggering cost of turnover” and, more importantly, some things you, as an employer, can do about it. You can read the full article here.
According to the article: “The American Management Association estimates turnover costs ranging between 25%-250% of annual salary per exiting employee, while the average monthly turnover rate in the US is three percent. For a company with 100 employees, that means turnover costs can easily surpass $1.5 million per year.” That’s serious dough. Apparently it’s even higher for so-called knowledge workers (finance and tech). And that doesn’t even count the other myriad of other costs: Lost productivity among remaining personnel, time spent training and interviewing new people, lost knowledge. It adds up. And, best of all, there are ways you can lower that significantly.
In the list of the things you can do to retain your best people, guess what the very first one is? Offer a better work culture. It’s just what we’ve been saying: Offer your people a place that empowers them and lets employees get real meaning from their work. And, of course, a very big chunk of that is being a place that offers values similar to theirs. We’ve talked about that in our numerous CSR posts. So spend a little time and money creating the culture that your people want and need to feel engaged, valued and a part of something bigger, and you’ll save big down the road.