24 Oct The Easiest Way to Save Your Company $16,600
When most managers think about cutting costs, it’s usually in terms of changing suppliers, reducing hours and downsizing employees. However, what many employers miss is that there’s a much larger opportunity staring them in the face.
How many new workers did your company have to hire this year due to turnover?
A recent study by Employee Benefit News estimates that the total cost of replacing an existing worker is as much as a third of that worker’s annual salary once all factors are considered. This means that replacing an employee making $50,000 has a total cost of $16,600 to your company.
Furthermore, the most recent retention report from the Work Institute concludes that 75% of all employee turnover is totally preventable, stemming from employee dissatisfaction rather than external factors.
What does this mean for you? It means that simply by focusing on keeping your employees satisfied in their current jobs, you are saving a truckload of money. This means that investing time and effort in creating an authentically happy workplace culture is one of the highest yield investments you can make.