It’s no secret that companies in every industry are having issues finding, attracting, and hiring great talent. While the jury is out as to why this is happening, one thing is for sure – once you find a ‘keeper,’ it’s in your best interests to ensure that person does not leave. And one of the best ways to do this is by having a phenomenal workplace culture.
Why are employees fleeing like never before? It could be due to the fact that 50 percent of the workforce is made up of Millennials and Gen Zs, and people in these generations are not willing to work in a crappy dysfunctional culture.
To calculate your turnover, add up the number of employees who left last year and divide it by the total number of employees at the beginning of the year. That’s your employee turnover percentage. The average turnover among employees in all industries is 18 percent, so you can see how your organization stacks up.
Employee turnover cost is the cost to hire a replacement employee and train that replacement. This may seem like it would not add up to a lot of money, but replacing a professional employee can cost up to 75 percent of the person’s annual salary, as you will incur:
- Lost productivity costs
- Recruiting and interview costs
- Post interview costs
- Hiring costs
- Onboarding costs
- Training costs
In addition, you will have the cost of reduced employee engagement from other workers, who have to cover the workload of the employee who left and who view the resignation as a sign that your organization isn’t the wonderful place that you are making it out be.
WHAT CAN I DO? Calculate your turnover rate and your employee engagement score (via a survey). If your organization is falling short, commit to making improvements by developing a strategy to create an amazing culture. Why? In general, people don’t leave wonderful workplaces that are meeting their needs. In addition to minimizing turnover, an extraordinary culture will boost productivity, customer satisfaction, and revenue growth. Don’t know where to begin? EmpowerPoints would love to talk with you about the possibilities.