top of page
Search
  • Writer's pictureHayley Studer

The High Cost of Employee Turnover


With voluntary employee turnover costs exceeding $600 billion nationwide, according to the Work Institute 2019 Retention Report, employee retention needs to be a top priority for every company. As labor-related costs are often the largest line item expense for corporations, companies have no choice but to pay attention to this area.

Prior to the recent COVID-19 pandemic, the US was in one of the tightest labor markets in recent history. Per SHRM’s 2019 State of the Workplace, 83% of companies surveyed struggled to recruit suitable candidates over the past year. For industries like healthcare that were at the top of the February 2020 Bureau of Labor Statistics job opening rates, losing current employees only compounds the problems. Overall hospital turnover is about 18%, according to the NSI 2020 National Health Care Retention Report, showing that even a small decrease in turnover can save an institution millions annually.

Although there is debate about the actual dollar amount of the cost of turnover, from a low estimate of $15,000 per employee to the higher end of a position's full annual salary, everyone will agree that this takes a toll on the bottom line of an organization. Not only are the costs noticed in recruiting and training, but turnover costs can be felt in other areas such as: paying overtime to existing staff for coverage, productivity of new staff, quality and safety concerns, and customer satisfaction.

Help minimize the loss of your valuable employees. As employees are furloughed and new opportunities open up in a post COVID-19 world, it is imperative that your workforce will be available to return when you need them. With profit margins projected to plummet in so many industries this year, you can’t afford to incur preventable turnover costs. We can help your employees stay engaged during furloughs, connect to the resources they need, and help you remain their employer of choice.

For more information about ways achi can help you communicate with your furloughed employees, please download our flyer.

_________________________________________________________________________

About achi

achi is a holistic care management company that lowers overall expenses by actively engaging people and connecting them to organizations to address the social determinants of health. Through innovative partnerships, cross-sector collaboration, and creative solutions, we equip organizations across multiple industries to educate the people they serve and connect them with resources to improve their lives from the ground up. By partnering with health systems, educational institutions and corporations, achi empowers lasting transformation in individual lives—resulting in an overall healthier population and data to transform our healthcare payment models. To learn more about achi and its mission, visit www.achi.solutions.

13 views0 comments
bottom of page