Managers can agree that employee engagement and retention are at the top of their priority list.
Every company wants to attract and keep the best talent.
Many employees in today’s job market quickly feel uninspired by their work, get bored after 2 years and start job hunting for something new.
Quick turnover drains companies, both financially and creatively. Quantifying exactly how much it costs businesses to replace every employee who leaves is a challenge, but estimates are out there. Here are some highlights from a collection of estimates on the costs of employee turnover:
- 6 to 9 months salary. (That’s well over half what you pay an employee in a year. For an employee making $100,000 a year, the cost of turnover could be as high as roughly $75,000. Ouch.)
- 16% of annual salary for jobs with traditionally high turnover, such as entry-level media jobs
- 20% of annual salary for jobs requiring mid-level experience
- 213% (not a typo!) of annual salary for top-level executive positions, including CEOs
All these numbers point to the same basic conclusion: employee turnover is expensive.
Outside of financial burdens, employee turnover puts a ceiling on the quality of a team or individual’s work. The reason? Companies with high turnover have fewer employees with a high degree of institutional knowledge. If most employees leave a company after just a few years, then the company never benefits from that golden combination of skills, talent, and critical institutional knowledge that helps business thrive.
So we decided to speak with some of the best HR professionals and business leaders around the country to find the strategies and employee engagement best practices that they recommend. There are also some tips and employee engagement ideas that work for our company. CONTINUE READING