Let’s get real: employee turnover is time consuming and expensive. But there are actually more costs associated with losing employees than meets the eye, such as the impact on coworkers and the organization as a whole. Preventing turnover comes down to one key element: retaining your employees. Learning how to keep current employees, especially during the Great Resignation (aka Great Reshuffle), can save your company substantial resources and help maintain essential morale.
According to our recent survey, 40% of individuals are likely to seek a new position within the next year. When turnover occurs, the monetary cost is overwhelming. Recruiting, onboarding and additional training are expensive tasks. The cost of replacing a single employee can even range from one and a half to two times their annual salary.
The effects of turnover go way beyond finances. When an employee leaves, their team and the company suffer the consequences.
Their workload has to be distributed somehow.This can lead to:
- Projects being halted.
- Team productivity dropping.
- Coworker morale depleting.
Their open position must be filled in a timely manner.
- Having this gap may lead management to act hastily in bringing on a new hire, rather than ensuring they are a perfect fit for the team.
- Hiring the wrong employee can exacerbate the issues mentioned previously.
The company’s brand reputation suffers.
- A reputation of having high employee turnover rates can deter potential future talent from applying for your open positions.
- High turnover causes current employees to worry that something may be wrong within their organization.
The good news is that 75% of turnover cases are actually preventable. Along with recognizing employees and promoting open communication, a significant way to reduce turnover is to enhance your benefits package. Offering high-demand benefits, such as Student Loan Repayment Assistance (SLRA), increases your chances of retaining and attracting top talent. 80% of millennials stated they would strongly consider a job with a student loan repayment benefit over one without it. SLRA produces a high ROI by easily and quickly paying for itself, since it helps reduce turnover rates and therefore reduces all costs associated.
If you are worried about the turnover rate within your company, know that there are things you can do to reduce it.
To learn more about the impact of SLRA on turnover costs, contact us. We'll provide a free SLRA ROI analysis. It takes just a few minutes to see the the benefit and the overall savings your organization can gain from utilizing SLRA.