The Great Resignation Calculation. What will this cost?
According to Gallup, it costs US businesses one trillion dollars a year due to “voluntary turnover” or, in normal terms, people who quit their jobs. We help with workshops and presentations that enlighten, empower, and entertain your people to bring them together, but let’s get back to that number…
One Trillion!
This is how it breaks down for an individual organization:
The annual overall turnover rate in the U.S. in 2017 was 26.3%, based on the Bureau of Labor Statistics.
The cost of replacing an individual employee can range from one-half to two times the employee's annual salary -- and that's a conservative estimate.
So, a 100-person organization that provides an average salary of $50,000 could have turnover and replacement costs of approximately $660,000 to $2.6 million per year.
According to Gallup, Fifty-two percent of voluntarily exiting employees say their manager or organization could have done something to prevent them from leaving their job. Over half of exiting employees (51%) say that in the three months before they left, neither their manager nor any other leader spoke with them about their job satisfaction or future with the organization.
The Nice Method is all about teaching leaders how to effectively recognize and retain their people.
We recommend reading this full article from Gallup, but before you leave, give our calculator a spin.
The Great Resignation Calculation
The Society for Human Resources Management (SHRM) reported that, on average, it costs a company 6 to 9 months of an employee’s salary to replace them if they quit (err, voluntarily turnover).
How much will this cost your company? Find out below.
The Great Resignation Calculation
It will cost* between $0.00 and $0.00 to replace this employee if they quit.
*Approximate figures based on a study by SHRM (Society for Human Resource Management).