News

A Data-Driven Case For Understanding The Impact Of Employee Engagement On Retention

A Data-Driven Case For Understanding The Impact Of Employee Engagement On Retention
by Sujan Patel

Employee turnover is a headache for the managers who wind up stuck with spots to fill, but employee departures aren’t just a hassle -- they can also be quite costly.

Karlyn Borysenko, writing for the TLNT blog, pinned the cost of employee turnover at roughly 30 percent to 50 percent of an entry-level employee’s annual salary, 150 percent of a mid-level employee’s annual earnings and as much as 400 percent of the average salary of a high-level or highly-specialized employee.

Losing more than one employee, according to this model, adds up quickly; a company that loses six entry-level employees, four mid-level employees and two-high level employees in one year can anticipate costs of more than $1.5 million just to replace these 12 employees.

Naturally, employee retention is a growing concern for forward-thinking companies, and it’s made all the more important by increasing competition for talent. In fact, according to data from Spherion: “78 percent of businesses are more worried about a talent shortage than they were last year.”

As Brittany Hink shared on her Human Resources iQ blog: “Organizations continue to fight the battle to recruit and retain the best employees, even if that means ‘poaching’ the employees from a direct competitor.

"It is common for recruiters to seek top talent at other organizations in order to strengthen their team," Hink continued. "Sometimes, this can come from direct competitors, and other times it comes from an innovative and aggressive industry.”

So, how can you keep your own employees from jumping ship to your competitor? The answer may be as simple as engaging them.

Read full article on Entrepreneur.