The average cost to hire an employee is over $4,000, taking over 40 days to fill a role (SHRM, 2018). Whereas the replacement cost is upwards of 33% of an employee’s annual salary, as per a report by Employee Benefit News. However a recent study by HR Dive with over 30,000 respondents reflected that 75% of the causes of employee turnover are preventable.
A separate Willis Tower Watson survey reflected that 1/3 of employees will leave their job within two years. People change jobs at every age – its not just a generational thing. So why do employees leave a company, and how can employers prevent turnover?
Below we have provided 5 of the primary reasons employees leave a job and ways to combat rapid turnover of your workforce:
1. Career Development – Employees want to know they have a future with your company, but also that it will advance their career. If you invest in your employees’ career development it will not only create a sense of belonging but enhance their skills for the work they do for your organization.
2. Culture – Today’s workforce is proudly made up of diverse individuals and it is imperative to make sure they feel included in company initiatives and from their peers. Invest in D&I training, make sure unconscious bias
3. Managers – Most times people don’t dislike the company, they dislike the people they work with. More times than not the people they spend the most time with and look for guidance from is their manager. Invest in manager training.
4. Work/Life Balance – Creating a workplace that fosters work/life balance not only provides employees with a way to enjoy the work they do and their personal lives but shows employees that they are trusted.
5. Pay Equity – Although financial compensation isn’t necessarily a key driver of what makes an employee stay at a job, everyone wants to feel they are fairly compensated for the work that they do.
One theme is clear – invest in your employee’s training, specifically education and career development. A small investment up front will not only save you money in the future but time, energy and effort that could otherwise be placed in productive work to further your business.