In today’s job market, employees are the primary asset of any organization. However, employee turnover costs statistics remain among the most frustrating and persistent challenges for most organizations. According to the Bureau of Labor and Statistics, about 3.6% of workers leave their jobs monthly. Leaders have to address the cause of attrition in retaining their workforce. The reason why employees leave is still not clear. If you are just starting your business or have challenges with employee retention, then this blog feels timely for you. Here are a few facts about employee turnover costs statistics.
Poor management makes employee exit 4x more likely
According to various studies about half of the employees say they quit their jobs due to bad management. More than half think managers are prematurely promoted, while 60% believe that managers require managerial training before being handed the managing task. In most cases, managers find themselves in these positions whenever there are new employee positions to be filled. Too often, the selected personnel is usually not ready or trained to manage teams correctly. This may cause unrest and force employees to find better-managed companies.
Employees who are not rewarded/recognized for good work are 3x likely to exit
Everyone likes to be celebrated for their excellent work. When it comes to seeking validation, employees who are recognized for their excellent work are more likely to stay loyal to the company. However, lack of recognition can quickly send employees back to job hunting. By recognizing and appreciating good work, managers often feel compelled to promote or increase salaries or benefits to the deserving employees. Companies and managers who help their employees manage their workload and consistently acknowledge them for good work are likely to have low employee turnover costs statistics.
The average turnover costs the US economy about $30.5 billion annually
Replacing employees is quite costly, particularly in today’s job market. Gallup’s study found that 21% of millennials change their jobs in less than a year. 60% report to be open for new job opportunities, and only half think they will still be working in the same organization one year from now. This shows how employee turnover costs in the US economy continues to grow every year. Most organizations have to think critically about money and spend more time and energy searching for exceptional talent through recruitment agencies, advertisement, interviewing, screening, hiring, and training.