Consider this article on ways to close the skills gap, suggested by the author, Eliza Kennedy on the website of The Training Associates (TTA). Kennedy makes some great points. Now let's break it down to basic math.
Here's why you want to do everything you can to retain good employees. If you have 350 employees and one in four will leave your employment in the current year that is approximately 87 employees. Now, if you do a good job of implementing the ideas outlined in this article you saved 67 of those employees from leaving.
It costs you...
- 16 percent of annual salary for high-turnover, low-paying jobs (earning under $30,000 a year- a $10/hour retail employee would cost $3,328)
- 20 percent of annual salary for mid-range positions (earning $30,000 to $50,000 a year- a $40k manager costs $8,000)
- Up to 213 percent of annual salary for highly educated executive positions (a $100k CEO costs $213,000).
If they are all low paying jobs you just saved $223,000! Now if half of those you keep from leaving, by coaching and developing them, are high level positions it could be saving you over $7 million. Trust me! I have seen organizations that are losing nearly half of their top level employees through attrition, micromanaging by executive managment or whatever. Shocking when you do the math, huh? (Survey stats are thanks to SHRM)