Improving Soft Skills of Millennials Is a Financial Matter
What are your employees worth?
People are valuable. Yes, the value of each person varies due to knowledge, skill, and labor, but every individual has a value. People are business’ greatest asset.
As businesses grow and employees grow, the value of the business will grow. If people do not grow or develop, the business becomes stagnate and operates no better than a marry-go-round of product/service and money–the pathway to a dying business.
When people grow, profits grow.
However, profits won’t grow if businesses cannot retain employees nor promote employees.
Turnover + No Development + Separation = Dying Business
Retention + Promotion + Multiplication = Growing Business
Cost of Employee Turnover
In 2015, 23.6% of employees voluntarily quit their job. It is the sixth consecutive year, the annual quit rate has increased.
This number is effecting businesses across all industries and impacting employer’s workplaces. People influence a business’ bottom line. Employee turnover is one of those big influencers.
If an employer has 100 employees and 23.6% of those employees make on average $35,000 quit, it costs the businesses between $413,000 to $826,000 in employee turnover costs. (Employee turnover is generally accepted to cost businesses 50%-250% of the employee’s annual salary.)
That is $2.0 to $4.1 million (50-100% annual salary) over five years in employee turnover costs.
Employee Retention Has A Price.
If employers can reduce their employee turnover rate by 5%, they will save their company between $437,500 and $875,000 over five years.
Employers can save roughly $437k to $875k!!!
“In the long run, your human capital is your main base of competition. Your leading indicator of where you’re going to be 20 years from now is how well you’re doing in your education system.” – Bill Gates