![]() In an article 5 on employee retention, Josh Bersin of Bersin by Deloitte breaks down key factors that contribute to the true cost of losing an employee. So what is the real cost of losing an employee? Up to 213% of an employee’s salary for C-suite positions.100% to 150% of an employee’s salary for technical positions.However, turnover seems to vary by wage and role of employee.įor example, some reports the average costs to replace an employee are: For a manager making $60,000 a year, that's $30,000 to $45,000 in recruiting and training expenses. Some studies 4 predict that every time a business replaces a salaried employee, it costs 6 to 9 months’ salary on average. The average cost of losing an employee can cost thousands of dollars. While the exact cost of turnover varies, there’s no question it’s something employers need to manage. Perhaps the biggest concern employee turnover presents is its financial costs from recruiting and training new employees to replace the ones you’ve lost. businesses a shocking $1.8 trillion dollars every year. A HubSpot report 3 found that lost productivity costs U.S. This kind of hit in your employees’ productivity is also a hit to your organization financially. As the remaining employees get overwhelmed with more work to help make up the difference, their stress levels rise, making them far less likely to perform at their best. Losing employees also leads to decreased productivity, quite simply because you have fewer team members to get work done. So if one employee leaves, the culture and commitment your remaining employees have to the organization and their role in it can be severely affected. What’s more, 50% of employees with a best friend at work reported feeling a stronger connection to their organization. As more employees leave, the ones remaining may have lost a valuable work friend, which matters more than you might think.Īccording to a study by Office Vibe 2, 70% of employees say that having a friend at work is the most crucial element to a happy work life. One of the first changes you’ll notice after losing an employee is a decrease in employee morale. This is especially evident in industries like professional and business services, manufacturing, and retail.įrequent voluntary turnover rates like these have a negative impact on your organization in more ways than one. employees voluntarily leaving their jobs has gone up in the last year in a trend known as the Great Resignation. In this article, we’ll go over why employee turnover matters, how it can hurt your organization, and strategies to prevent it.ĭownload our employee retention guide to learn how to keep your employees without breaking your budget Why does employee turnover matter?Īccording to the Bureau of Labor Statistics 1, the number of U.S. If you offer employees benefits that are personalized to their needs, you’ll in turn lower your employee turnover rate. Offering a high annual salary isn’t the only way to compete with larger employers-benefits also play a large role in employee retention. This is especially challenging for small businesses and nonprofit organizations that have to compete with larger businesses, and larger budgets, for top talent. For organizations to thrive in today’s economy, finding and retaining the best employees is vital.
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