Decreasing employee turnover? What is the Cost of employee turnover?
Decreasing employee turnover with Randee Lehrer - Leadership & Executive Coaching
Costs of replacing the average employee is at least 21% of their annual salary due to direct costs (exit interviews, severance, unemployment tax, overtime or temporary staffing, recruitment, agency fees, employment testing, training and orientation). What is not counted are indirect costs (lost productivity due to short staff and reduced morale, costs incurred due to errors of new employee, lost clients, loss of historical/organizational knowledge)
Costs are disproportionately higher for executives, which run up to 213% of annual salary.
Employee turnover rateThe cost to provide retention strategies average less than 10% off annual salaries.
The global talent shortage is now the highest in 10 years making replacement even more difficult with an overall loss in production for the organization.
More employees leave voluntarily (20%) than are terminated (16%).
In 2016 the median length of time employees stayed with their employer was 4.2 years. This is expected to shorten due to competition for talent and unfulfilled staff expectations.
Over 75% of voluntary turnover is preventable.
33% leave due to lack of career development or the job not matching expectations.
21% leave for better opportunities to learn or be challenged
12% due to lack of work life balance
Annual turnover is at epidemic proportions (20-90%) and in some industries it directly affects their service, brand, and bottom line.