What Businesses Need To Know To Protect Themselves From High Employee Turnover

A strong team culture is the foundation for anything your company is aiming to accomplish

According to studies, 66% of employees quit their jobs citing ‘lack of appreciation’ as the main reason. Employee turnover directly impacts not only company revenue and profitability, but culture. According to a recent report by Gallup, 51% of American workers are actively looking for a different job and those who have already made a switch have collectively cost businesses $1 trillion.

It’s no secret that employee turnover is expensive: it requires time and money to train new staff. In fact, the cost of replacing a single employee typically ranges from 10-40% of the employee’s annual salary (or $15,000 per worker). There are also several not-so-hidden costs that come with high turnover, including a decline in team morale, distrust in management, uncertainty about the future, and unhappy customers. Each can promptly lead to a loss in ROI, efficiency, and competitiveness.

Putting in the time and effort to show your employees you appreciate them is one of the best ways to reduce turnover. A strong team culture is the foundation for anything your company is aiming to accomplish. As a result, it’s vital for employers to place as much value on their employees as they do paying customers. This involves year-round efforts and recognition that many businesses tend to overlook.

Finding ways to create fresh, relevant, and most importantly valuable programs that employees enjoy and engaging with results in happier employees that feel a part of a larger purpose and go above and beyond what is expected of them.

The companies with the strongest culture and happiest workers usually implement fully integrated engagement and recognition strategies throughout the year. Showing appreciation for employees beyond an annual holiday bonus and recognizing them on their birthdays or service anniversaries goes a long way. Employees feel more committed to the company when employers take the time to recognize their efforts consistently and thoughtfully—maximizing those smaller moments throughout the year.

Ultimately, our research points to one key point: Recognizing employees for their contributions in a personalized way impacts their connectivity to the organization, to their team, and to the work they do.