High turnover rates can hurt any company. Some studies estimate that organizations pay an average of 6-9 months’ salary to replace every employee that quits. In other words, if a business loses an employee that earns $80,000 per year, it would cost them between $40,000 and $60,000 because of lost productivity, hiring, training, and onboarding.
Employee turnover can have a significant impact on your bottom line. Employment professionals estimate that turnover costs between 1.5 to 2 times an employee’s salary. For every employee that quits who earned $100,000, your company could spend $200,000 in hiring and training costs—not to mention the lost productivity from other employees who need to pick up the slack.
Everybody knows that motivation is key to doing good work. Company culture has become a popular term among corporate leaders; more and more companies are focusing on creating a culture that fosters motivation in their workforce and you know the saying: happy workers are effective workers. Thanks to an increasing body of research, we’re learning a lot about what it takes to build and maintain a high-performance culture within an organization.
