A whopping 1 in 4 employees were believed to have left their jobs in 2021. This level of employee turnover comes at a great cost to employers. We break down why employees are leaving, what it costs businesses, and some Great Resignation solutions you can implement.
Why are employees leaving?
Employee benefits are not a one-size-fits-all solution. Answering a question like, “Why are employees leaving?” also doesn’t produce a one-size-fits-all set of responses. It’s dependent on the industry, employer size, and so much more. However, pay and benefits are pretty common themes.
CareerPlug surveyed 500 participants who were considering leaving their jobs. Their top reasons why they were considering leaving their jobs were:
- Current salary/hourly pay
- Employee benefits offered aren’t the right fit
- COVID safety concerns
- More flexible work schedule
What is the cost to you?
Cost of being short-staffed
- Depression is estimated to cause 200 million lost workdays each year.
- Working more than 55 hours per week can negatively affect employees’ health.
- Employee burnout can lead to less engagement, creativity, and innovation.
Cost in productivity/profitability
- Higher absenteeism
- Less productivity
- Less profits
Cost of replacing employees
One study found that it costs 33 percent of a person’s annual salary to replace them. That means it costs you:
- $15,000 to replace an employee making $45,000 per year
- $25,000 to replace an employee making $75,000 per year
- $40,000 to replace an employee making $120,000 per year
The projected cost of employee turnover to U.S. businesses every year is $1 trillion!
What can you do to support employees?
Employers can make the Great Resignation a great opportunity to bring in even more talent and retain the talent they have when they:
- Offer a lifestyle spending account
- Enhance mental health offerings
- Provide flexible work arrangements
- Get creative with financial support
- Provide and promote telemedicine
Want to learn more about these solutions? Get your free guide.
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The information in this blog post is for educational purposes only. It is not legal or tax advice. For legal or tax advice, you should consult your own counsel.