Employee Turnover and the Hidden Costs Involved
I ran across an article the other day about job-hopping and how it's on the rise. According to Forbes, 43% of millennials plan to quit their current job within the next two years. Only 28% plan to stay in their current role for more than five years.
The survey was based on the views of over 10-thousand millennials and over 18-hundred members of Generation Z across 36 countries. All had college or university degrees and were employed full-time in large, private-sector businesses.
What caught my attention was how "un-concerned" upper management in businesses seem to be. Closed-circuit bosses - you might want to start fighting harder to keep your good employees because most of the time it's not about the money.
Millennials believe there's a wide gap between how companies should behave and how companies actually behave. Only 48% of respondents believe corporations behave ethically and 40% say business leaders are negatively impacting the world.
If you're a boss and that doesn't catch your attention, this most certainly will. The cost to search, hire, train and get a new hire up to speed is EXPENSIVE. The following statistics are from a study done at Alvernia University.
- Entry-level employees cost 30% to 50% of their annual salary to replace.
- Middle-level employees cost 150% of their annual salary to replace.
- Specialized or high-level employees cost up to 400% of their annual salary to replace.