The Cost of Employee Turnover

Submitted by on Wed, 07/12/17

cost_employee_turnover

The biggest priority for business leaders in 2017, according to Fortune Magazine, is retaining employees in a competitive talent marketplace. This study found 87% of employers believe improving retention rates is critical for their business and employees agree.

Employee Turnover: The Alarming Costs

Their urgency is not unfounded. The Huffington Post crunched the numbers of a recent Society for Human Resource Management (SHRM) survey about employee retention and determined that losing a salaried employee who makes $60,000 per year will cost the company between $30,000 and $45,000 in losses. The core revenue loss is attributed to recruitment and training of a position replacement. The study drilled deeply into the expenditures and headaches associated with employee turnover like advertising for an open position, interviewing, training, low productivity from new hires who are learning the ropes, and the impact on morale when a team member leaves.

Why Do They Leave?

If those numbers are startling, calculating them against the number of people likely to leave their jobs in the next year is terrifying. Today’s workforce has greater expectations about their work experience. Employees want to feel connected to the work they’re accomplishing, the workplace itself and a sense of belonging to their companies. When their needs are not immediately met, they lack loyalty. A recent Gallup poll said that 6 in 10 Millennials are open to changing jobs and almost a quarter of them have already changed jobs in the past year. Gallup estimates their movement in the workforce costs the U.S. economy $30.5 billion annually.

The labor market has made significant improvements for those seeking jobs that are unemployed as well as those that are disengaged employees offering more choices and avenues for finding a new opportunity. As said succinctly in a Deloitte article on employee retention, companies need to retool their conventional strategies from just “hold people here” to “attracting and engaging people” to stay.

Promoting the Workplace Experience

A mobile workplace is one of the fastest and simplest ways for companies to communicate their brand, culture, and fringe benefits to employees. If you’re not making the move, your talent competitors are and as 90% of job seekers surveyed in 2016 stated they use mobile for their job search. The mobile first companies will win out in the war for talent.

Modo Workplace™ allows candidates to view company information, stay up to date with a social feed, and take a virtual tour of the space. Once you’ve brought on the newest employee, keep them engaged with readily accessible and personalized information such as dining, fitness, transit, benefits, and more, all through an enterprise-scale mobile application. Keep candidates and employees consistently engaged with the workplace by delivering a unified, transformative experience that is responsive to their consumer-like on demand needs. Modo Labs makes it easy for company leaders to quickly create and deploy your app by integrating company data sources into pre-built modules. The app can easily be customized to reflect your unique brand and culture.

51% of your disengaged employees are actively looking elsewhere. It’s a cost to your company you can’t afford. Decide to address this critical loss today and request a demo to learn how you can deploy tomorrow.

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