Ever think about what it costs a company to lose an employee to turnover?
According to Inc., the figure in December 2018 was 33 percent of the employee's salary. Far worse, a study by the Society for Human Resource Management reports the cost could range to five times the annual salary of the vacant position.
What drives an employee to take another job and leave a company with such a monetary vacuum? TinyPulse, a respected source in employee-engagement pulse surveys, analyzed data from more than 25,000 employees globally from January to October 2018.
Their message:
Those who disapprove of their supervisor's or manager's performance are four times as likely to seek employment elsewhere. The study also revealed that 40 percent who do not rate their supervisor's performance highly have interviewed for a new job in the last three months.
This response, in contrast to just 10 percent of those who rate their supervisor highly. Also, nearly 22 percent of workers who don't feel acknowledged for good work have interviewed elsewhere in the last three months– compared to just 12.4 percent who do feel appreciated.
According to the report, employees who approved of their work-life balance are 10 percent more likely to stay at their company. On the other hand, if they feel work is keeping them away from their family and personal priorities, they're more likely to be looking around for a better situation.
Employees who rate their company culture poorly are 24 percent more likely to leave.
In fact, the research found that a company's culture has an even more significant impact–24 percent–on an employee's decision to stay or leave than their benefits agreement. A slightly higher number–26 percent–reported that a low level of respect among co-workers would make them more likely to leave their jobs.
Employees who feel they're progressing in their careers with a company are 20 percent more likely to stay for another year. Meanwhile, those who don't feel support in their pursuit of professional opportunities are 300 percent more likely to be seeking a position elsewhere.
