Business Challenge: Employee Turnover
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The 2021 PwC Pulse Survey: Next in work found that 65% of people in the workforce are considering leaving for a new job. With The Great Resignation in full force, it’s ever more imperative to boost retention efforts.
With that many people ready to leave their organizations, the costs related to employee turnover start adding up quickly. The effects of losing talented people are widespread, from monetary costs to culture costs, and an organization that doesn’t take steps to turn around a turnover trend will quickly start seeing the negative effects compounding.
Employees leave companies for several reasons, but multiple surveys have found consistencies in top reasons why talented people walk out on their employers.
A Closer Look at the Problem
Employee turnover itself is not the problem – it’s a symptom of deeper issues. Most commonly, those issues are a lack of quality onboarding, discontentment with managers, and a lack of ongoing development or advancement opportunities.
A Pew Research study found that:
- 63% leave because of low pay
- 63% leave because of lack of advancement
- 57% leave because they felt disrespected
- 45% leave because of a lack of flexibility
- 43% leave because of poor benefits package
It’s clear that lack of advancement is a huge deal for employees, and with that comes training. Insufficient training indicates to employees that they can expect development opportunities to be lacking down the road.
Companies that want to reduce employee turnover but aren’t focused on how well they’re developing their people are missing the biggest factor in retaining talent.
So, how costly is this issue in your organization?
Cost to Your Organization
SHRM reported that on average it costs a company 6 to 9 months of an employee’s salary to replace them. For an employee making $60,000 per year, that comes out to $30,000 – $45,000 in recruiting and training costs.
What goes into turnover costs? Direct costs could include severance pay, exit interviews, temporary staffing, and replacement costs to recruit and onboard new employees. Some indirect costs could include lost productivity, lower quality work from ramping employees, reduced morale, and even lost clients.
This calculator defaults to using a 20% cost of turnover per salary. If you know your organization’s custom rate, feel free to adjust this field:
On to the savings...
Does that number make you cringe? Well, don’t worry – the bad news is over. Let’s move on to the exciting part – seeing how much you can reduce turnover by offering the training and development your talented people are looking for.
Providing ongoing development addresses the main issues of why people leave their company. Managers’ abilities to lead are continually improved, and individual contributors receive the growth opportunities they expect from an employer.
On-demand training solutions are particularly effective, since they provide the self-directed approach to learning that high-performing employees seek out. Offering on-demand learning to employees through a solution like The 电竞王者(南昌)下注赛事网址 Collection has been proven to help organizations drastically reduce turnover. 电竞王者(南昌)下注赛事网址 clients who’ve implemented these solutions have seen turnover rates drop anywhere from 15% to 87%!
Are you ready to see how implementing on-demand learning solutions can crush the cost of high turnover in your organization?
Savings for Your OrganizationUse the slider to see how much reducing your employee turnover rate will save your organization.
Choose a percentage of turnover reduction:
Now for the ROI:
The average cost to provide online employee training for employees is $ per employee per year.
And that’s only when you account for employee turnover—not the countless other ways in which training can save your organization money.
There’s surefire proof the investment in your employees’ development is worth it!