15.04.2019

69% of companies with high turnover rates say they suffer from ‘too few’ employees

New research shows 69% of companies with high turnover rates say they suffer from ‘too few’ employees
19% of non-managerial survey respondents say burnout is most likely to contribute to high staff turnover rates; 16% cite lack of career development as their reason
23% of non-managerial respondents cites salary as the reason they would leave their job tomorrow, with ‘lack of recognition’ coming in second place at 11%
51% of senior/management staff think they experience high rates of turnover compared to 58% of non-managerial employees

A survey by Resource Guru investigated the differences between perceived and ‘true’ cost of staff turnover, as well as the reasons behind it, to help companies better understand why staff leave. They asked 500 senior/management employees and 500 non-management employees what they think about their company’s turnover rates, causes, and perceived costs.

A company with 1-9 employees though that replacing departing staff members would cost an average of £2,446 while companies with more than 500 thought this number would stand around the £4,796 mark.

The numbers don’t seem particularly high at first, however what’s not being taken into consideration are the total administrative costs of finding and hiring a new employee, and the amount of time it takes for them to reach peak productivity.

When comparing perceived cost with existing data, the difference is stark.

Company size	Perceived Cost	‘True’ cost
1-9 employees	£2,446	£22,500
10-49 employees	£2,697	£26,000
50-99 employees	£3,329	£30,000
100-249 employees	£2,954	£30,000
250-500 employees	£4,856	£33,000
500+ employees	£4,769	£34,000

The true cost rises even more if the staff to replace are very senior or work in specialised sectors like STEM as the pool of qualified candidates is smaller.

Employees also report feeling unhappy at work due to lack of meaningful development, recognition, low salaries, and general feelings of burnout.

Clearly, companies must tackle the reported dissatisfactions form their employees if they’re interested in retaining talent and not incurring the true costs of high employee turnover.

View the full campaign here: https://blog.resourceguruapp.com/employee-turnover/

Posted by: FMJ 0 comment(s)