The High Cost of Employee Turnover: Why Satisfaction Saves Your Bottom Line

Employee turnover can be an expensive problem for companies, costing an estimated $1 trillion annually in the U.S. alone, according to Gallup. On average, replacing a single employee can cost a company 33% of that worker's annual salary. For example, if an employee earns $60,000 per year, the cost to replace them can soar to $20,000. These costs include recruitment, training, and the time it takes to get the new hire up to full productivity.

High turnover also impacts company morale, leading to further disengagement. In fact, companies with low engagement levels report 18% lower productivity and 15% lower profitability, as found by a Gallup study. By focusing on employee satisfaction—through competitive pay, benefits, recognition, and work-life balance—businesses can significantly reduce these hidden costs.

Retention is more than a human resources issue; it's a financial one. Lowering turnover by just 10% could save companies thousands of dollars each year. Employee satisfaction isn't just about keeping your team happy; it’s about keeping your company financially healthy. Investing in your employees directly impacts your bottom line, driving higher productivity and long-term profitability.

Frameworks like The Six Types of Working Genius can help raise employee satiation and lower turnover. Click the button to learn more about this program and see if it could be just what your team needs to be more productive and happy!