One trillion dollars is the annual cost of voluntary turnover for US companies, according to the Bureau of Labor Statistics. This is just one of the many important statistics to keep in mind as you develop (and defend!) your HR strategy for 2023.
The cost of unhappy employees
This includes turnover and replacement costs, but there are other costs that are not easily quantifiable. More often than not, turnover can be prevented: 52% of voluntarily exiting employees say that their managers or companies could have done something to avoid it.
The burnout syndrome, which 23% of employees suffer ‘very often’ and 44% ‘sometimes’, is costing between $125 to $190 billion every year in healthcare costs. Understanding the phases of burnout and preparing a burnout retention plan can help save your company from the cost and drop in productivity. Most importantly, it ensures the health of your most important asset: your people!
Employee engagement is reported to have dropped from 34% in 2021 to 32% in 2022. Does that reflect in your organization? Whether your engagement levels are higher or lower this year, having solid initiatives to improve engagement is key to ensuring that employees are satisfied, motivated, and invested in their job, leading to the success of your organization.
And, according to a survey by the American Institute of Stress, 62% of employees have a high level of stress, with 41% of stressed employees citing workload as the reason for their stress. Multiply that by the average hourly salary of about $30, and we get a whopping 16.5 billion dollars!
Statistics on employee wellbeing
The consequence of this is a $7 trillion loss in productivity. While a small number of employees are actively disengaged in their work and the workplace, most of these employees are indifferent to the organization they work for. This means they are putting in their time but not their most creative effort or ideas.
In recent years, employee engagement has been on senior executives' radar screens as they realize that growth is tied to high-performing employees, and that it gives them a competitive edge in the market and that it also allows them to save on hiring and retaining new employees.
This is not the only statistic that is satisfactory for businesses with highly engaged employees. They also have a 17% increase in productivity, a 10% increase in customer ratings, a 20% increase in sales and 21% greater profitability.
The Asana study answered by workers across seven countries showed that Gen Z (84%) and Millennials (74%) reported more burnout than Baby Boomers (47%).
These high rates are closely related to the “always on” feeling strengthened by the pandemic and remote working, and show that women continue to have a more difficult day-to-day experience at work than men.
2021 holds the highest average turnover record since the year 2000.
Managers need to pay attention to critical skills that will make them understand how they make other people feel. Understanding this and managing their own emotions are strong drivers of talent retention.
The high cost of turnover is rooted in the cost of recruitment and onboarding. Predict voluntary turnover within teams, so you can better prepare and save the organization time and money. Check out how Erudit measures turnover risk!
Statistics on employee surveys
In a time as volatile as this, timely and actionable employee feedback is vital to drive change in order to be competitive in today’s workforce market. Companies must gather up-to-date information on employees' insights, so feedback should be collected regularly, among other strategies.
However, the average response rate is 30%, which means that you are missing feedback from 70% to 40% of your workforce. Feedback from employees should be reliable enough for companies to take action on what impacts their employee engagement and productivity. But are we gathering enough reliable data or is survey data too limited?
Which directly affects the response rate and, consequently, the reliability of the data collected as a representation of the issues impacting your workforce’s satisfaction..