Employee turnover is one of the most difficult challenges businesses face when running a people services operation. Turnover causes major disruptions to normal business operations for businesses and clients alike, and if it is not managed properly, can be detrimental to a business’s revenue stream and reputation. Imagine having to turn new clients away due to employee turnover and staffing shortages. How could you possibly expect your business to grow? Work Institute conducted a study in 2017 and reported that the average cost of turnover per employee is approximately 33% of that employee’s annual salary. To provide some more context, if an employee makes $25,000 per year (roughly $12/hr), the cost of turning over that employee would be $8,250. What could you do with an extra $8,250 by reducing employee turnover by one single employee?
In a follow up report published this year by Work Institute, they found the following top reasons for employee turnover as stated by surveyed employees that had recently left their employers. These are listed by what contributed the most to an employee leaving an employer in ranked order.
Career Development Work-Life Balance Manager Behavior Job Characteristics Well-Being Compensation and Benefits
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