It is hard for employers to ignore the costs associated with employee turnover. The average cost of replacing an hourly employee is reportedly $1,500, according to PeopleKeep. But for technical positions, it’s 100% to 150% of their salary. And for C-level positions, the cost is a whopping 213% of their salary!
That is a lot of money to spend on hires who may or may not stick around. A Pew Research Center survey found overall, about four million workers switched jobs each month on average from January to March 2022. This translates into an annual turnover of 30% of workers or nearly 50 million.
Add to this that one in five workers says they are likely to look for a new job in the next six months, and the potential cost to their employers is high considering up to 20% of the current workforce could exit at any time.
There is a solution. Can some or all the positions your company offers be done remotely or with a more flexible hybrid model? If the answer is yes, then it’s worth pursuing. Turnover goes down 50% when employees have a remote work option, according to a report by Zippia. One out of five workers asked were even willing to give up vacation time in exchange for virtual work opportunities.
As of last year, some 26% of employees in the United States are now working remotely. That is four times more than pre-pandemic levels. With employees looking for flexibility and employers looking to attract and retain top talent, there is no doubt remote work is here to stay.
By Tara Thomas-Gettman