Why Employee Experience
Because turnover is expensive .....
1
Recruitment Costs
Expenses related to job advertisements, recruitment agencies, and hiring processes to find suitable replacements for departing employees.
A Recent survey by SHRM found that the average cost per hire for recruiting is over $4,000 and can be greater depending on role.
2
Onboarding Costs
Investment in training, orientation, and integration of new employees into the company.
ATD Estimates that onboarding costs $1,250 and paperwork alone takes 10 hours of HR Time.
3
Productivity Loss
A decline in productivity during the transition period as new hires take time to reach the same level of efficiency as their predecessors.
A new employee can take 1-2 years to reach the productivity levels of an existing person and often requires a senior person to take on additional tasks
4
Knowledge Loss
When experienced employees leave, valuable institutional knowledge and expertise may be lost, impacting overall organizational knowledge.
10-20% of an employees salary is typically invested in training
5
Reduced Morale
Frequent turnover can lead to decreased morale among remaining employees, affecting team dynamics and overall engagement.
Other employees who see high turnover often disengage and lose productivity
6
Customer Impact
High turnover may lead to inconsistent customer service and dissatisfaction, potentially resulting in lost customers.
New employees take longer and are often less adept at solving problems quickly and require senior intervention
7
Managerial Time
Managers and supervisors may spend a significant amount of time on recruitment, onboarding, and training, diverting their focus from other critical tasks.
8
Turnover Related Costs
Exit interviews, severance packages, and related administrative expenses can also add to the total cost of turnover.
9
#1 Business Expense
How much have you invested lately in your top business expense?
Gallup
“The cost of replacing an individual employee can range from one-half to two times the employee's annual salary depending on position and level"
https://www.gallup.com/workplace/247391/fixable-problem-costs-businesses-trillion.aspx
Bureau of Labor Statistics
"The annual overall turnover rate in the U.S. in 2017 was 26.3%."
https://www.bls.gov/opub/ted/2018/hires-and-quits-rose-in-2017.htm#:~:text=There%20were%2065.3%20million%20hires,reaching%2038.2%20million%20in%202017.
Simple Math
“A 50-Person organization that provides an average salary of $50,000 could have turnover and replacement costs of approximately $330K - $2.6M per year”