Turnover is a costly problem for businesses, and it’s growing more costly by the year. In 2018 turnover cost businesses $600 billion a year, and that number is expected to skyrocket to $680 billion by the end of next year. There are a lot of reasons people leave their jobs, but there are a few things you can do to keep them around.
Because the job market is so strong right now, employees have plenty of options. There are more jobs right now in the U.S. than there are people to fill them, so many workers are taking the opportunity to move up the ladder to grow their careers and make more money. When they go to interviews they are often fielding multiple offers and might not show up for a job they committed to take, a move now known as ghosting.
But companies don’t have to go broke trying to give everyone raises to keep employees around. 54% of employees report leaving for an increase in pay, but 72% of workers say they would stay at a company if they increased benefits. Companies that offer a six benefit plan decrease turnover by 138%, while the average turnover rate for a business with no benefits is 157%. In addition to standard benefits like health insurance, dental insurance, vision insurance, and life insurance, employees are also looking for benefits like professional development, retirement, and even better office culture.
Employee Turnover prevention - a few important tips
Improving office culture is probably one of the easiest benefits to add to any company. Add a common area where people can gather to get to know each other better. Ping pong tables are sort of cliche, but having some sort of interactive activity like a ping pong table or pool table can keep people engaged with one another when they take a break. Adding free snacks and drinks and having an office lunch once a week or once a month can also help improve company culture - hunger kills productivity! Team building exercises, such as hiking trips or escape rooms, can help build team rapport.
Last year a quarter of employees left their jobs, but 77% of those could have been prevented by their employers. Turnover doesn’t have to cost your business; you just have to take a look at the benefits you are offering your employees and see where you can make additions. Learn more about the cost of turnover and how to prevent it from the infographic below!