Employee Retention
Employee turnover is one of the largest though widely unknown costs an organization faces. While companies routinely keep track of various costs such as supplies and payroll, few take into consideration how much employee turnover will cost them:
- Ernst & Young estimates it costs approximately $120,000 to replace 10 professionals.
- According to research done by Sibson & Company, to recoup the cost of losing just one employee a fast food restaurant must sell 7,613 combo meals at $2.50 each.
- Employee turnover costs companies 30 to 50% of the annual salary of entry-level employees, 150% of middle-level employees, and up to 400% for upper level, specialized employees.
How to Improve Employee Retention
- People want to enjoy their work so make work fun and enjoyable.
- Understand that employees need to balance life and work so offer flexible starting times and core hours.
- Provide 360 feedback surveys and other questionnaires to foster open communication. Consider allowing anonymous surveys occasionally so employees will be more honest and candid with their opinions.
- Provide opportunities within the company for career progression and cross-training.
- Offer attractive, competitive benefits and 401(k)s.