CliftonLarsonAllen (CLA) Consulting Manager Karen Altekruse has written an article addressing how business leaders can use employee engagement to reduce turnover costs and increase business efficiency.
In it, Altekruse references the Work Institute, which recently reported that turnover cost American businesses $600 billion in 2018, and it is expected to reach $680 billion by 2020. Yet when calculating the full cost of turnover, Altekruse adds there is more to the calculation than the costs directly associated with finding and training the replacement.
She says the full financial impact also includes such items as:
- The number of lost-work days to fill the open position
- The cost of the time for those involved in the interview process
- The time it takes for the new hire to learn the job and produce at the expected level
Yet not all businesses are destined to fight turnover at every turn. Altekruse says companies that invest up front in engagement strategies will reap the rewards later by maintaining associates.
“People who arrive at their job feeling connected to their work, the people around them, and the mission of the business are going to be more productive,” Altekruse writes. “Engaged employees will demonstrate their passion through their interactions with others, their enthusiasm, and their daily tasks. Conversely, a disengaged employee’s attitude and performance will probably be unsatisfactory in the long term. The process of finding and training replacements can be expensive, so it makes sense to explore the issue of turnover.”
Altekruse follows by addressing different approaches found in business to employee turnover, as well as ways businesses such as CLA and other consulting operations can be helpful. To read her article in its entirety, please CLICK HERE.
