How does your staff turnover compare to the national average?

13 Apr 2022

Published in: Member News

The cost of replacing an employee can range from 50% to 400% of their annual salary, so employee retention is more important than ever. Learn more.

Businesses are now operating in a candidate driven market where employees are finding it easier than ever to apply for and switch jobs. This has undoubtedly been accelerated by the pandemic.

Employees now have fresh demands for the modern workplace in line with health, safety and wellbeing and they are not afraid to look elsewhere if those demands aren’t met.

It is common belief that if your retention levels meet and exceed 90% per year then you generally have nothing to worry about. What is worrying, though, is that the national average is slowly but surely sliding closer to 85%.

What this suggests is that British businesses aren’t doing enough to keep their staff happy at work. The immediate consequence is poor wellness and productivity. In the long run it will inevitably lead to higher staff turnover.

The cost of replacing a team member could soar up to 400 times their annual salary. This considers the “hidden” expenses surrounding team disruption, lost productivity and added stress for other members.

Needless to say, then, you cannot afford to make it easy for your staff to walk out your door. Instead, you must foster a culture that promotes retention through a happier working environment.

78% of staff agreed that they are more likely to stay at a company because of the benefits package on offer, so talk to your team and discover what kind of perks will be most valuable.

These could include implementing cost-effective office coffee machines to help upgrade break times. It can also be as simple as utilising open space as areas where staff can talk about anything that might be bothering them.

The bottom line is that if your employees can see that you care for their overall wellbeing, they are more likely to be happier at work and want to stay.

Wellness initiatives don’t have to be costly, but they are usually valuable.

Submitted by Alistair from Coinadrink Limited
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