When you think about it, hiring a new employee is an expensive venture. From marketing to onboarding, the hiring process can cost well into the thousands of dollars for a single employee, not to mention the impact on other staff.
When an employee leaves your company, you’re not only incurring the cost of a new hire, but you’re also losing the time and resources you invested in the previous one. The average rate of turnover, according to the Bureau of Labor Statistics, is around 57%, so when your business starts experiencing a higher volume of staff leaving, it’s a good idea to identify why.
The High Cost of Turnover
The cost of replacing employees reaches far and wide. Here are a few ways that high turnover may be eating away at your bottom line:
- Excess overtime clocked by staff to compensate for the loss of employee(s)
- Extra marketing expenses from running ads and hiring recruiters
- Additional costs incurred from background checks, drug screenings, and pre-employment testing
- Loss of productivity from operating with reduced staff (not to mention the loss of morale that often parallels turnover)
- Slower productivity due to waiting for new hires to complete training
- Negative impact on your brand
Improving Employee Experience to Reduce Turnover
Reducing turnover is key in improving your employee’s experience. Because turnover can have a snowball effect, identifying the patterns of turnover is key in figuring out the root cause(s).
Likewise, when employees start to leave, it creates an environment of disunity. Not only are other employees left to pick up the slack, but they may also start to question the ability of management.
Strategies to help reduce turnover include:
- Developing better communication from management down
- Providing opportunities for career advancement and professional development
- Designing competitive benefits packages
- Prioritizing work-life balance
Managers can also proactivity contribute to reducing turnover by implementing goals to help increase productivity and galvanize team unity. The organizations that have little turnover and high productivity show their employees that they’re valued and take steps to ensure their company is a great place to work.
Are you experiencing high turnover? Looking to fill an opening in your team? Reach out to the professionals at Arbor Associates to find qualified individuals quickly!