CHARLESTON, S.C. (PRWEB) AUGUST 14, 2019
Businesses pay a hefty price for employee turnover and disengagement. When workers leave, it disrupts operations, increases recruiting and replacement training costs, decreases customer service levels and, ultimately, hampers profitability. But when companies are aware of their high risk of turnover, their management can course correct, implement retention plans and otherwise mitigate risk.
“Our research revealed that recruitment and replacement training costs alone can add up to 100% of annual pay,” said David Allen, Associate Dean and Professor of Management at TCU and Science Advisor to ENGAGE Talent. “Another one of our studies revealed that just one standard deviation decrease in turnover can potentially lead to up to a $150 million profit increase for Fortune 1000 companies. Making sure employees and employers are a good match from the start saves time, reduces costs and increases productivity.”
Other research emphasizes the high business costs of low-level worker engagement and high employee turnover. For instance, Harvard Business School says employee turnover is associated with decreased customer service and profit margin. Gallup reports that businesses in the top engagement quartile average 12% higher profitability.
Where Turnover Has the Biggest Impact on Performance
Intelligence from ENGAGE reveals the industries in which companies’ performance is most impacted by employee turnover. That includes the telecom, pharmaceutical, business services, software and internet, aerospace and defense, automobile manufacturing, some areas of financial services, and media and creative sectors.
Predicting Turnover
ENGAGE also does a predictive assessment of the likelihood a candidate is open to changing jobs. In its exploration of the financial services, healthcare and tech industries, ENGAGE found that financial services employees are most likely to change jobs in the next 90 days. They also are the most likely to be interested in a new job and in responding to a recruiter. Workers in healthcare are least likely to change jobs.
New York, Dallas and Chicago are the cities in which financial services and tech employees are most likely to change jobs, ENGAGE reports. For financial services, Houston and Los Angeles are the next two cities in which employees are most likely to change jobs. In the case of tech workers, the next two cities are Los Angeles and Houston. Meanwhile, ENGAGE reveals that healthcare workers in Los Angeles are most likely to change jobs, followed by New York, Dallas, Chicago and Houston.
What Matters Most to Future Employees
ENGAGE predicts what candidates will find most attractive in new job opportunities. Its AI-based predictive models take into account candidates’ professional histories, past employers, environments to which they were exposed, dynamic market changes and the actions of their peers. ENGAGE also assesses which of the following five career drivers – strong leadership, business stability, company resilience, growth opportunities and a positive environment – are most important to job candidates.
For example, insight from the ENGAGE platform shows growth potential is the most important concern for employees across the financial services, healthcare and tech sectors. ENGAGE also highlights that healthcare workers place an especially high value on promotional opportunities. They value a positive environment and strong leadership, too. Meanwhile, a positive environment ranked lowest on the list for tech industry professionals. Tech pros tend to be more interested in company resilience, which is second on the list for folks in financial services and at the bottom of the list for healthcare workers.
“It is not a secret that organizations with more engaged employees and lower turnover perform better. Now we are able to quantify the impact and prove it with empirical research. ENGAGE gives companies this kind of talent-driven intelligence so that they can make more informed decisions about talent acquisition, engagement and retention,” said Joseph Hanna, ENGAGE founder and CEO. “This is critical for them to stay competitive in one of the tightest labor markets in history.”