Did you know that job turnover cost employers $600 billion in 2018?
According to a recent study, that number is expected to balloon to $680 billion by next year.
The reality is, when employees go looking for greener pastures, it can quickly leave your business drowning in red.
Think of all the time and money you spend running job ads, conducting interviews, and screening candidates. Look at all those hours of training required for new team members to get up to speed. If they get unhappy and leave, that whole investment goes right out the door with them.
To help you get a handle on how much turnover is costing you, Hire Well Now offers a free turnover calculator.
In this three-part blog series, we take a closer look at the problem of turnover. Part 1 focuses on the overall scope of the problem and all of the ways it costs you big money.
How Many People Are Quitting Their Jobs?
Over 40 million Americans quit their jobs voluntarily in 2018.
That’s 60.7% of the 66.1 million total job separations — a.k.a. “turnover” — which includes people leaving jobs for any reason, such as getting laid off, getting fired, retiring or even dying.
And the problem is getting worse. The Bureau of Labor Statistics reports that annual “quits” — their term for leaving voluntarily — have risen for 9 consecutive years. The retail trade alone had 6 million workers quit last year, and was one of 17 out of 19 industries that recorded their highest quit rate in history.
What Is the Cost of Employee Turnover?
Do you know what turnover is costing your company? Our free calculator will give you a general idea. Do you think it will be higher or lower than you expect? Most employers are generally surprised when the numbers come out.
Also, keep in mind that the metrics used in the calculator are just the beginning. High turnover harms your business in many ways:
- Overall business performance. When good employees quit, customer service declines, which lowers your profit margins.
- Daily task management. Instability hurts coordination between team members and impacts the quality of everyone’s work.
- Overall brand image. If your company develops a reputation for high turnover, job seekers may hesitate to apply for openings, and customers may take their wallets to a competitor.
- Team dynamics. Employees are more effective when they have a good rapport with their co-workers. High turnover makes it harder to build that sense of camaraderie your workplace needs to thrive.
- Productivity. No matter how much talent they bring to the table, new employees will always need time to “learn the ropes.” This can disrupt customer service and your long-term success.
In today’s hyper-competitive job market, recruitment is only part of the battle. To truly win the war for the best talent, you’ve got to ramp up your retention game as well.
If you’re looking for ways to cut turnover in your business, contact Hire Well Now today to learn about ePULSE™ and all of our managed Retention Solutions.
Stay tuned for Part 2 of our series on turnover, when we’ll talk about why people quit their jobs.