The Society for Human Resource Management (SHRM) estimates that one in three workers will leave their jobs this year.
For example, an organization with 500 employees and an average annual salary of $65,000 that loses 90 employees per year to turnover has a yearly employee turnover cost of just over $3,000,000.
However, the true cost of turnover goes beyond just replacement expenses. Other significant costs include:
• Reduced customer satisfaction and potential loss of customers
• Lost organizational knowledge
• Deferred or lost revenue
• Overburdening remaining employees
• Decreased morale, feeding into a cycle of ever-increasing turnover
• Poor reputation trying to hire new employees
• Opportunity costs of time spent recruiting and training new hires
It can take one to two years for a new hire to reach the productivity of an existing employee.
During this time, remaining employees may become overwhelmed with additional work, further impacting morale and productivity.
By investing in retention strategies, such as Professional Coaching, organizations can save valuable time, energy, and money in the long run.