Finance News & Insights

Turnover reaches all-time high: How much is it costing you?

You never want to see a good employee leave your company. But it’s likely happening more than ever. And costing you a bundle.

Turnover has hit a record high: 19.3% in 2018, up nearly a full percentage point from last year and more than 3.5 percentage points since 2014.

That’s the word from a report published by Compdata.

Of course it’s never cheap anytime you have to replace an employee. To give you an idea: If that person was making $45,000, you can expect it to set you back $15,000 to find, hire and train that new person.

Now think about having to do that for 20% of your workforce every year.

So how can you stem the tide? Yes, there’s research that everything from your 401(k) to loan repayment assistance  to how much they like their boss play a major role.

You can also just talk to them.

4 questions well-worth asking

Chances are your company conducts exit interviews when folks have already given their notice.

But by conducting “stay interviews” you can gather insight that will help keep you from having to do so many of those exit interviews.

You don’t have to put individual team members on the spot. In fact, many think this strategy works best when you pull in two or three of your top performers at the same time.

Then ask them these questions courtesy of

  • Why do you stay at this company?
  • If you’ve been contacted by a headhunter, why haven’t you been interested?
  • What are the things you enjoy most about your job?
  • If our company could do anything better, what would it be?

Getting those answers from your best of the best not only gives you a road map for what you’re doing well (and could be doing better), but it reminds those folks you want to stay with you most just why they do.

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