Attrition, and Your Top & Bottom Lines
There is a direct link between employee satisfaction and what I call the three R’s of business – (R)evenue Growth, Cost (R)eduction and (R)isk Mitigation.
When key employees — like those in the sales department — quit unexpectedly, revenue can suffer as deals are delayed or lost to competition. Even if revenue is not at risk, it costs your company real money every time an employee quits. According to a recent Deloitte study, that cost may be as high as 2x the departing employee’s salary. Unplanned turnover can also increase operational risk as it may impair key customer and partner relationships.
According to Gallup, 50% of employees quit their manager to improve their situation. If you manage others, do you know with certainty whether your team members are fulfilled in their current role and under your leadership?
If you are an HR professional, do you have the tools and training in place to help your management team encourage, develop and retain your most valuable asset – your people?
Do you know if your employees are happy and fulfilled and the potential cost to your business if they aren't?