Employee turnover costs the company between 16% and 213% of annual salary depending on the position. Why does losing an employee cost so much? High turnover costs are expensive which includes company advertising, conducting interviews, hiring, and training new hires. The productivity of the new hires is also an issue, as it takes up to two full years to match the level of productivity of an existing employee.
What strikes mostly on the cost is 50% of voluntary turnover happens in the first two years of employment, especially among the youngest generation. Strengthening employee engagement during this period is a key for the company’s growth.
There are costs associated with high turnover, but there are also different ways to reduce it. With the changing way career is being perceived by young employees, non-salary benefits are growing in importance.
Financial perks is one of the most valuable benefits for your employees, and it is also one of the top reasons why your employees stay engaged at work.
How can you increase your employee benefits at no extra costs? We figured out the top 5 strategies to retain employees based on our partner employers’ experiences.