While the national average sits at an annual 17.8 percent, the rate varies among industries. That much movement adds up on company books. To calculate the cost of turnover to your company, you’ll need to consider many factors, including:
For example, if you have 1,000 employees and 15 percent turnover each year, you’re responsible for training new employees to fill those open positions. If training each new employee takes two weeks at 40 hours per week, and your new employees make $15 an hour, you can anticipate spending almost $200,000 a year. That cost doesn’t even cover the trainer’s salary, recruiting, or the sunk costs of turnover.
You also sacrifice weeks of productivity. Companies with 1,000 to 10,000 employees require about 26 days, on average, to refill a position. That time increases depending on the role and title of the position you’re filling.
While you can’t eliminate employee turnover completely, you can keep these costs at a minimum if you invest in your training strategy.
You should also invest in continued training to keep your employees happy. As more millennials join the workforce, their proven interest in continued learning and development will drive their loyalty to your company. A recent Gallup report stated that 87 percent of Millennials rate “professional or career growth and development opportunities” as important to them in a job. Yet only 39 percent “strongly agree that they learned something new in the past 30 days that they can use to do their jobs better.”
Are you ready to invest in your training, rather than invest in filling vacant positions year after year? We’ll consult with you to create a new training strategy that will engage and retain your employees.