By Neal Glatt
Employees continue to leave companies for greener pastures and employee turnover is the largest cost that employers never quantity. Quitting creates a vicious cycle where employees never get competent, managers stress to backfill responsibilities, and everyone feels burned out. Retain your best employees by creating a sticky culture where…
Development drives retention for employees. By investing in people, we can reduce turnover dramatically. But first, we have to understand how dangerous and costly turnover actually is to a firm.
It has been estimated that the average cost of an employee leaving the company is between 1.5 and 5 times their annual salary. Add up all the costs of posting jobs, interviewing, training, uniforms, mistakes new employees make, lost knowledge or skills from departed employees, inefficiency from disruption, and perhaps even customer turnover as they follow an employee to a new company. You’ll quickly realize that even a front-line employee who makes $40,000 a year can easily end up costing the business $60,000 or more by leaving.
So how can we reduce turnover and create a more sticky culture? Well, we can start by creating a pathway to help employees stay engaged with our company. Gallup reports that 93% of the time that employees changed roles, they left their employer to do so. This tells us that employers aren’t offering career advancement opportunities nearly enough, as the competition and employees are pursuing their professional growth by leaving companies.
When an employee asks for a promotion or pay raise, companies need to help them achieve their goal by developing them. Too many owners simply deny these requests when they should be providing the training these employees desire to improve their skills and become worthy of that pay increase over time.
If you’ve been wasting too much time, money, and effort on turnover, maybe you need help developing your employees. That’s why we started GrowTheBecnh - to make employee development easy and affordable. To help you get started, use the promo code TURNOVER for a FREE MONTH of access for 10 of your people to all of our courses when you sign up for our All-Access Pass. When you do, you’ll see higher engagement, more productivity, and a much stickier company where people love to work.
Tags: Quitting , Employee Turnover , Investing ,