How much is your annual staff turnover costing your business?
On average, across the construction sector in the UK, up to 30% of the workforce will turnover every year.
It's not just about the initial recruitment outlay, when people leave a business it affects everyone around them by increasing workloads and stress, has major implications in terms of productivity downtime, incurs induction and industry affiliation training costs and often encourages others who are unhappy to leave as well.
Retaining employees saves time and money
Direct losses from losing an employee are associated with:
Loss of knowledge & relationships
Damage to brand & reputation
Reduced productivity (understaffed)
Reduced morale & team dynamics
Loss of clients and gross income
Direct costs associated with replacing employees include:
Time to onboard new team members
Advertising for position
Recruitment fees for agencies
Training new recruits
Fringe benefits, bonuses and relocation costs
Engaged employees are less likely to leave
However, happy employees who are positive, motivated, enthusiastic and engaged with their work and believe their company cares about them are less likely to leave.
According to Vitality, a market leading health insurance provider, the UK economy lost almost £92 billion in 2019 (£91.9 billion) as a result of ill-health related absence and presenteeism in the workplace.
British businesses also lost an average of 38 working days per employee to physical and mental health related absence and presenteeism in 2019 (compared to 23 days lost in 2014) highlighting the need to address productivity in the workplace through effective workplace wellness programs.
Can you afford not to evolve into a company that puts compassion and employee wellbeing at the heart of it’s business?