A 100-person organization that pays an average salary of $50,000 could have employee turnover & replacement costs up to $2.6 million per year.
Did you know that employee turnover can cost a company 1.5-2 times they employee’s salary?
That means losing an employee who earns $75,000 could cost your organization up to $150,000. In high-turnover industries, these costs can quickly spiral out of control.
“According to a 2021 study by the Bureau of Labor Statistics, the average annual turnover rate is 47 percent across all industries, which accounts for both voluntary and involuntary turnover,” explains BuiltIn’s Kate Heinz.
The actual rate of turnover varies greatly by industry, however. The highest turnover rates in 2021 were seen in Leisure & Hospitality, followed by Professional Services, Transportation & Utilities, Construction and Manufacturing.
One of the key ways organizations can help reduce turnover is to make it easy and convenient for your employees to educate themselves. And not just role-specific or on-the-job training and reskilling, but enrichment, upskilling and career advancement training as well.
“Many employees cite opportunities to grow as a reason to stay at their job – or a reason to go after another,” explains Michele McGovern of HRMorning.
“But just offering employees a splattering of learning opportunities won’t cut it.”
In fact, according to a recent study by Harvard Business Review, 88% of people rank professional development and career growth opportunities as important when they’re looking for a new company.