In the last decade of my work with large companies, I have seen many leaders struggle to understand the driving factors of employee retention.
You must first understand what today's trends mean to your company.
According to Gallup, employee turnover costs the US Economy over $1 Trillion every year.
If you take into account that SHRM (the Society for Human Resources Management) estimates that it costs between 1.5 to 2X an employee's salary to replace them, a 100-person organization with an average salary of $50,000 could have turnover and replacement costs of approximately $660,000 to $2.6 million per year.
The US Department of Labor’s Bureau of Labor Statistics the annual employee turnover rate for 2017 was 26.3% across all industries with some industries reporting as high as close to 75%
According to the Deloitte 2019 Millennial Survey, 49% of millennials said they would leave their current employers within the next 24 months. These are not just words...in the 2017 report the same question was asked and 38% of respondents said that they would leave. Since then, ¼ of them have.
