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.
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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.
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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.
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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.
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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.
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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.
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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"
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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%."
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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”