The Economics of Employee Turnover in Your Business

In 2018, 1 out of every 4 employees left their job. Over ¾ of that turnover could have been prevented by employers. Employee turnover is becoming a bigger and bigger problem for employers as of the past few years, due to the fact that new potential hires have been “ghosting” the interviews they sign up for, or not showing up after signing up for an interview. They do this because of the multitude of jobs available, they can afford to be picky about which jobs they want to work and who they want to work for. People are also leaving their jobs, for an increase in pay, a chance to advance their career, or they want more or better benefits.

When an employee employee leaves, replacing them takes a lot of time and money. Replacing an employee can cost at least ⅙ of what their salary was, and the cost to replace a $10 an hour employee can cost more than $4000. When people leave, companies pay for recruiting, which also takes time, on-boarding, training, productivity, and customer service.

To avoid people leaving and for more people to join, companies are investing in their workers by increasing benefits and making better wellness programs. Companies that have higher levels of well-being, whether it be clinical health, workplace culture, or support systems in the office, have upwards of 2 times employee engagement.Even different generations want different things in the workplace. Millennials want more flexible work opportunities and mentoring programs, Gen Xers want childcare options, and Baby Boomers want retirement coaching, savings programs, and long term care insurance. So regardless of who, everyone wants more benefits and a better workplace experience as a whole.

Find out what employee turnover is doing to businesses, how they are dealing with it, and how this problem could get better here.

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