High Employee Turnover hurts everyone. What are you offering?

28 Jun

High Employee Turnover hurts everyone. What are you offering?

Employee Turnover
image credit: http://www.hcrcstaffing.com

 

More employees are leaving organizations now than few years ago, placing it top on HR challenge list, according to Employee Experience as a Business Driver, the 2016 SHRM/Globoforce Employee Recognition Survey. In 2012, we had just 24% of companies complaining about employee turnover. In 2016, that figure has risen to 46% raising cause for alarm. Low productivity? Lack of motivation? Unsatisfactory pay? Working environment?

Common with millennials is the student loan debt that just seems like it would never go away. It drags along sapping life and energy out of them. The Young Workers and Student Debt Survey shows that
  • 54% of young workers say they will pay student loans first and save for retirement later
  • 44% of young workers say they have no idea how they will pay off their student debt
  • 40% of young workers said they worry about how student loans have impacted their health
  • 31% of young workers said out of all financial obligations they worry most about student loans
  • 26% of young workers said they worry about repaying their student loans all the time
  • 30% said they worry about repaying student loans often and
  • 25% they worry sometimes
Businesses need to take deliberate actions to reduce the effect of student loan on employee productivity. However, it equally creates an opportunity for businesses to create the perfect environment that could foster retention of their smartest young stars. Employee turnover costs many businesses as much as $3,079 per hire. Global head of talent management for Willis Tower Watson, Laurie Bienstock, said “Employees need five to nine months to reach their full productivity, depending on their duties. New employees can create a productivity drag for managers and fellow team members, which adds significantly to the cost of turnover”. This productivity drag shoots up cost of turnover greatly.
Bersin by Deloitte estimates put organizations’ loses at more than $100,000 for every employee who leaves. This is excluding other indirect costs like lost client relationships, institutional knowledge, and previous training for the employee leaving. If businesses look beyond the first-year orientation and training, it is easy to see that employee turnover cost is actually higher.  It also includes interim reduction in labor and lost productivity costs.
Solving this challenge could be tricky especially for businesses employing millennials. Benefit packages targeted at offsetting student loads would be a reasonable long-term play since top of priority for most millennials is offsetting student loan, according to an ASA survey. Eliminate the single biggest challenge for employees and keep them on a package that offsets the debt over time. Boost their motivation, improving their productivity. It’s simply a win-win situation for everyone.
 
 
 

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