Employee turnover is something that companies have to deal with on a daily basis. Some turnover is beneficial, in that it allows unproductive workers to walk out the door. Other turnover is detrimental, in that highly competent veteran workers leave, only to be replaced by a novice.
While employee turnover is a critical measurement of how well the company keeps its talent, it also can be a key cost driver. Costs can be significant for finding, recruiting, hiring and re-training each worker. As employees leave they also take critical knowledge with them, and their loss can disrupt projects and deadlines while replacements are found. Those employees may begin working for competitors, allowing the competition to benefit from your company’s investments in employee training. Companies suffer through increased training costs and decreased productivity because of constant employee turnover.
As workers move from company to company when a better offer comes along, the result is employees that have good general skills, but lack the knowledge, experience, and the network of interpersonal contacts that come from years of working within the same company. HR executives not only need to develop a benefit package that will retain employees, but must maintain a work environment that is conducive to good company morale.
Competitive salary and benefits, flexible schedule options, and tuition assistance are three basics in employee retention. Especially for millennial employees, these are the Holy Grail for recruitment and reducing employee turnover.
You can help employers with one method of reducing employee turnover while meeting the diverse needs of their workforce at the same time. Introduce Purchasing Power’s employee purchase program. It’s a great way for employers to extend their benefits offerings without incurring additional employer-paid premiums. Our employee purchase program provides employees with a way to buy much-needed and unplanned-for household and lifestyle products, in addition to a variety of educational services such as SAT preparation and college courses, keeping them on budget and further stretching their hard-earned money.