Staff turnover can have a serious impact on a company; costing time, resources and money, and according to a report made by Oxford Economics, can cost more than £30,000 on average to replace one employee.
Loss of productivity caused by the time needed for a new employee to get up to speed in their role, which takes an average of 28 weeks across the board, puts the cost of replacing an employee at £30,614. According to Oxford Economics, this period of lost productivity has an attached average cost of £25,181 per employee.
The sectors that face the hardest hit over costs of turnover are:
- Legal: £39,887
- Accountancy: £39,230
- IT & Tech: £31,808
- Media & Advertising: £25,787
- Retail: £20,114
In a bid to reduce turnover rates, many companies are using new software’s, online databases and websites to measure and recognise staff praise and issues.
Using new technologies like predictive analytics in HR are helping employers put together “flight risk” scores, predicting which employees are most likely to leave. This helps companies to make more informed decisions around their employee retention efforts. Investing in platforms that help with knowledge transfer will allow new hires to adjust more quickly to the company’s processes and work patterns.
Employee satisfaction polling software allows companies to collect data that shows them how their employees are feeling and performing (TINYpulse and Polly.) Using employee recognition and reward platforms, such as YouEarnedIt and Kudos, improve morale by recognising workers’ achievements and making them feel more appreciated.
As previously reported, flexible working is one of the leading motivators for staff and some research even shows that many workers would choose flexible working over a pay rise. Options that allow employees to work remotely or put in flexible hours help to improve work-life balance and can contribute to better staff retention.
By introducing new software and platforms to your business will allow office providers to set up fully serviced flexible workspaces for small, medium and large businesses looking to reduce operating expenses and turnover costs.
Instant Offices’ Head of Marketing & Research John Williams, gave a breakdown of how logistics are also a big face, with recruitment fees, advertising costs and temp hires also contribute to high turnover costs:
Recruitment agency fees: £454
Advertising the newly available job opening: £398
Hiring temporary workers: £3,618
Time spent interviewing candidates: £767
HR time spent processing a replacement: £196