Jobs – Staffing Companies - Express Employment Professionals

In any business, turnover is unavoidable. Employee movement within the workforce is natural and can be attributed to various factors making it all the more important to have a plan to effectively manage your workforce.

Best retention practices come in many shapes and sizes, but they’re all linked by the same basic idea—employees are a company’s most valuable asset. From affecting productivity to engagement, excessive turnover can wreak havoc on even the most established business’ ability to stay competitive.

How much does employee turnover really cost?

There’s more than knowing your turnover rate when it comes to understanding the true cost of turnover. Express Employment Professionals developed a turnover calculator that brings to light costs from separation to replacement to productivity loss. Use this online calculator to determine the cost of turnover for a specific position or for your company overall.

When you’re ready to start addressing employee turnover challenges, Express is your resource for advice and professional solutions to help keep business moving.

If turnover becomes a regular occurrence, it can have a negative impact on the most important part of your business—your employees—resulting in serious consequences for your company. The last thing you want is your company’s reputation damaged by something that can be controlled if the right steps are taken.

While a high employee retention rate is desirable, it’s not always ideal to have an unusually low turnover rate. Turnover can be healthy for an organization to an extent, in the case of underperforming team members, whether someone has checked out with retirement on the horizon, or someone lacks motivation because they aren’t happy in their role. It’s important to find the right balance and the first step is ultimately understanding how it impacts your business.

There's a turnover calculator that can be accessed at

ExpressPros.com/

TurnoverCalculator

to determine the true cost of turnover.

Studies show the actual cost to replace an employee is significant. Depending on a variety of factors—including skill level, education, and experience—the total cost of turnover can be as high as 150% of an employee’s annual salary. It’s easy to see how quickly it can add up!

To truly gauge the impact of employee turnover, consider these costs:

Advertising open positions

Time spent interviewing candidates

Time spent on reference checks

Onboarding a new hire

Training and development

Interim loss of productivity

Lost knowledge from exiting employees

Overworked core staff due to turnover

Impact on company culture

Additional Employer Resources from Express Employment Professionals

Acknowledging that turnover is common in the employment cycle, organizations that delve into the complexity of expected turnover rates gain a pivotal advantage in proactive management. This foresight allows businesses to plan, allocate resources appropriately, and implement targeted retention strategies. They also cultivate resilience, ensuring the continuity of operations and the necessities to keep a thriving workplace culture intact.

Consider these questions as you conduct a turnover assessment:

What is your company’s turnover rate, and how does it compare to the industry benchmark?

Are there patterns or trends in turnover related to specific departments, teams, or roles?

Are we preparing leaders to be aware of what’s going on within their team to reduce turnover?

How satisfied are employees with their work environment, opportunities for growth, and leadership?

What initiatives or programs are in place to support employee retention and well-being?

There’s no magic number when it comes to employee turnover—10% is healthy, but every industry and every organization is different.

_{Source: Gallup}
_{Source: JobsEQ}
Positive retention habits are the best defense against negative turnover. The pursuit of reducing turnover within an organization requires an appropriate allocation of resources and focus on initiatives that produce tangible results. Time wasters can impede progress and reduce the effectiveness of turnover management efforts.

Several factors and practices contribute to wasting time and resources when attempting to manage turnover:

Unclear strategy

Ignoring employee feedback

Inadequate onboarding programs

Inadequate recognition and rewards

Mismatched job expectations

Overworking employees

Ignoring diversity and inclusion

Insufficient training and development

Inconsistent communication

Ineffective leadership

Inflexible work policies

Undefined career development

Inadequate benefits and compensation

Ignoring workplace well-being

Prioritize the optimization in investment of time and resources, and pave the way for targeted turnover strategies that contribute to a resilient and thriving workplace.

U.S. Results

Canada Results
Dedicated to providing timely and relevant career-related topics and insights to job seekers and employers.
Talk to your local Express representative for more information about these and other training and development resources available from Express Employment Professionals.

Investing in your team is a strategic move that can yield significant returns. Show dedication to your people and how important they are to your organization. While the upfront costs may seem significant, the long-term benefits can outweigh the expenses—prioritize maintaining the well-being and job satisfaction of your employees.

Strategies to invest in your team include:

Provide a workplace that is comfortable and conducive to productivity

Foster an environment of creativity, collaboration, and empowerment

Implement opportunities for growth, upskilling, and career advancement

Offer competitive benefits

Present ways to recognize employee achievements

Evaluate total compensation, including salaries, to stay competitive within your industry

Express has the right employer resources to help you invest in your team, including Engage to Retain, a supervisory training program, that addresses how to start a new hire off on the right foot and set them up for success by establishing career goals and a focus on employee development. Ask your Express representative for more information or visit ExpressPros.com/EngageToRetain.

Engaged employees are

38%

more likely to have above average productivity.

_{Source: Workplace Research Foundation}
Everyone has different intrinsic motivations for their careers and different ideas of success. It’s critical to be upfront with expectations to help mitigate turnover and ensure employees are prepared to stay. Many employees and job seekers are more focused on achieving personal fulfillment and work-life balance. Flexible work schedules, remote work options, and other initiatives that support a healthy work-life balance can be beneficial and contribute to employee satisfaction and reduced burnout.

Engaged employees are more likely to stay with a company. Programs that foster a positive and inclusive workplace culture, provide opportunities for professional development, and recognize and reward employee contributions can improve engagement. Create an environment that motivates your employees to choose to go above and beyond in their roles. Just as important, listen to your disengaged employees to discover why they feel disconnected and how you may get them re-engaged.

Improved productivity is a key result of keeping your employees engaged. Happier employees are more productive and, in turn, produce higher-quality results. Better service or products lead to an improved reputation, setting up your business to thrive. Simply said, higher employee engagement leads to numerous positive outcomes for your organization.
80%

of job seekers define success more by work-life balance than climbing the corporate ladder.

_{Source: Job Insights survey conducted by The Harris Poll on behalf of Express Employment Professionals}

of hiring decision-makers agree that employees who are content in remaining in their current role still contribute to the success of a company.

_{Source: Job Insights survey conducted by the Harris Poll on behalf of Express Employment Professionals.}

say they’ve had employees retire in the past two years, with a third of those U.S. employees and more than half of those Canadian employees retiring before the age of 65.

_{Source: Job Insights survey conducted by The Harris Poll on behalf of Express Employment Professionals}

Diversity is a major topic that extends beyond roles and responsibilities of the job—it includes the varied generational perspectives. As organizations strive to create inclusive environments that cater to the needs and preferences of individuals spanning different age groups, they will learn how to leverage the collective strengths of diverse experiences as an opportunity to improve.

By accepting each new generation entering the workforce, you can embrace the set of qualities, traits, and values that come with each generation. Today’s workforce consists of Baby Boomers (19%), Generation X (35.5%), Millennials and Gen Z (39.4%). With more Baby Boomers reaching retirement, the workforce is expected to see Gen Z account for approximately 30% alone by 2030. In three short years, Alphas will begin entering the workforce as well.

With more than four decades in staffing expertise, Express Employment Professionals is a recognized leader in the industry. Let the staffing experts at Express formulate solutions tailored to your needs. Contact us today to learn how we can help solve your turnover challenges.