Team members leave when their values are not being satisfied - money not the driver, just the smokescreen
Consider the following sample calculation. A business with 500 employees can expect to have 50 resignations per year. Latest Average Weekly Earnings (AWE) figures issued by the Australian Bureau of Statistics (for 2012) record AWE for full-time employees of $1,345.20. Adding 30% to this for the cost of employee benefits and on-costs amounts to $403.50, giving a total cost of $1748.70.
Assuming turnover cost to be a year’s total remuneration for each employee, total annual cost of turnover for this business is $1,748.70 x 52 weeks x 50 employees. That’s a total of $4,546,620 per year. So a retention strategy that was able to reduce employee resignations from 10% (50 employees) to 5% (25 employees) per year would save this business almost $2,273,310.00 million per year, less the costs of implementing the strategy. What if the true turnover cost was three times the annual salary of an employee?
Try this Cost of Turnover Calculator.
