The cost of employee recruitment and replacement can range from one-half to two times the employee's annual salary — and that's a conservative estimate.
When employees are engaged, 87% of them are less likely to leave their company. Meaning they are 5 five times less likely to leave compared to unengaged employees. Of those who do leave, fifty-two percent of voluntarily exiting employees say their manager or organization could have done something to prevent them from leaving their job.
Additionally, employees under age 25 said they stay with their current employer because of training and development (69%) and career opportunities (65%).
Prioritizing employee engagement from day one is key when trying to reduce employee recruitment and replacement costs — in other words, preventing turnover to begin with.
In fact, research by the Society for Human Resources Management found that, “when a company has great onboarding 69% of employees are likely to stay for at least 3 years.”
A recent study by Harvard Business Review found that, in order to combat turnover and improve employee recruitment and replacement, leaders need to prioritize learning and development:
- 82% of employees and 62% of HR directors believe that workers will need to hone their current skills or acquire new ones at least once a year in order to maintain competitive advantage in a global job market.
- HR directors believe that ensuring that an organization has the latest collaborative technology in place to enable agile learning is the most important factor in recruiting and retaining the best talent, and 88% of employees confirm this notion, saying that they look for this when searching for a new position.
An effective learning and development program goes far beyond onboarding and job-specific training, extending throughout the employee journey to include upskilling and reskilling, professional development, soft skills, and more.
Prioritizing continuous learning across the entire employee journey helps organizations keep employees engaged and drive continued growth and personalized value — both of which are key to improving retention, supporting recruitment by differentiating your organization from your competitors, and driving long-term employee engagement and satisfaction.