By Brooke Erol
One of the challenges I hear from CEOs, entrepreneurs, Human Capital Directors is retaining great people. “Great” people here means they are a good fit for their position and are also aligned with values and culture of the organization. They tend to have the highest performance. They care about what they do and how they do it. They outperform since they use their strengths. As Gallup studies always find out, people using and improving our strengths are six times more likely to be engaged at work.
Many leaders I meet have major concerns about attracting, retaining, and replacing good talent. This is true everywhere. I had many trips to different countries where the common theme among executives is around low engagement and high turnover rates. Some leaders have good clues to the reasons why, some do not seem to have any answers.
Even though many leaders are concerned by turnover, they are not aware of the real cost of it. You will be surprised to see the numbers.
According to Bersin by Deloitte Research, the average turnover rate is 13%. Thus, if an organization has 30,000 employees and an average voluntary turnover rate of 13 percent, the potential cost to the organization is a staggering $427.7 million in one year. The problem is many managers look at the average direct cost only (which is $3,976 in average) that does not include interim cost of labor, training, orientation, indirect costs, lost productivity, and other factors that cause loss that totals up to $109K per person.
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Brooke Erol is an advisor, a speaker, and an author who is interested in the future of work and how organizations can thrive in this new world. She works with executive teams to increase employee engagement, lower turnover rates, and hire the right people based on both culture and job-fit using a three-phase methodology that uses Emotional Intelligence practices. She is the author of Create a Life You Love. Her purpose in life is to help as many individuals and organizations as possible to find their purpose and actualize it. You can connect with Brooke on her website or on Twitter (@boerol1).