How much does turnover cost your business?
According to the Society of Human Resources (SHRM) the average cost of a new hire is $4,129. However this pales in comparison to other costs associated with turnover. In fact, there are numerous costs to consider. From hiring the new employee, opportunity cost, training costs, sunk costs (the lost employee) , as well as the decrease is morale; that typically follows an employee that had camaraderie and influence with coworkers, the cost can be surmounting. In fact, “experts estimates it costs upwards of twice the employee’s salary to find and train a replacement” WSJ
Here are ways to lower turnover in your workplace:
- Hire the right people from the start. Be thorough in your search, not merely for skillset, but more importantly for culture and job fit.
- Setting the right compensation and benefit expectations and meeting them. Offering tuition reimbursement (which 61% of businesses offer), annual salary increases for over performing employees. (Average being 2.7% annually).
- Pay keen attention to employee needs, motivators, and morale boosters. Many employees seek a position with purpose, a positon that offers growth and learning potential.
- Maintain a positive work environment, foster and environment where recognition and awards are a mainstay.
Are you using your PEO to its fullest potential? If not please contact us at Niroc Consultants to learn how your PEO can assist with these disciplines.
For more information on how to reduce turnover costs, labor cost, and boost morale from SHRM click here. For more information and the full WSJ article click here!
As always we thank you for your continued commitment to Niroc, and we appreciate any recommendations to business owners that you believe will find value in a consultation.