Every time an employee quits, you’re losing money right off your bottom line.
Most employers are all too familiar with the direct cost of replacing an employee (things like recruiting, screening, interviewing and training). But in addition to these obvious expenses, attrition also creates a host of “hidden” costs for your organization, such as:
Opportunity costs: This is time HR professionals and hiring managers could be spending on productive activities other than replacing an employee.
Position vacancy costs. An unfilled position negatively impacts your customers, increases the burden on remaining employees, and undermines productivity.
Knowledge loss costs: When an employee quits, he takes much more than his personal belongings. He takes ideas. Company information. Critical knowledge about products, services, processes and customers.
Turnover is undeniably an expensive proposition.
If your company is suffering from attrition, a lack of employee work-life satisfaction may be driving good people out the door. Research supports this logic:
- Employees struggle to find the right work-life mix. As we mentioned in an earlier post on employee flexibility, recent research shows that over two-thirds of today’s U.S. workers struggle to balance their personal and professional lives.
- Lack of work-life satisfaction causes turnover. Rigid hours and inflexible policies at work make it tougher for professionals to achieve the work-life mix they want, ultimately contributing to increased attrition. In fact, research cited in an Inc.com post lists a lack of work-life mix as the second biggest reason employees quit their jobs.
- Increased flexibility can actually reduce attrition. Organizations that allow employees some control over when and where they work, based on their needs and job responsibilities, can reduce turnover. One study shows that a “results only” work environment can reduce turnover by 45 percent.
Work-life satisfaction: your employee retention “secret weapon.”
It’s no secret, really. Employees value work-life satisfaction. The ability to leave work at work, and have quality time with family, is priceless to most people. Help them achieve the right mix of work and play, and they’ll be less likely to seek opportunities elsewhere.
Another great way to decrease attrition?
Provide the support your direct employees need. Our flexible professional staffing and search services alleviate the stress that position vacancies, special projects or tight deadlines can cause your team. Contact your local Corps Team office to learn more.
