The Economic Impact
As of August of 2014, the Bureau of Labor Statistics (BLS) reports that approximately 2.5 million people in the USA quit their jobs voluntarily in the last 12 months. The good news is that this number has been steady for quite some time and remains below pre-recession years. However, it is still a very large number of people.
Consider the cost to the employer to replace each one of these employees. The US Census states that “In 2013, the median earnings of women who worked full time, year-round ($39,157) was 78 percent of that for men working full time, year-round ($50,033).” Some people estimate that an employer may need to invest between half and up to five times the employees annual salary to replace them.
Under these circumstances, if an employee earns $44,595 a year (the average between the median earnings of men and women according to the Census), then an employer would need to spend between $22,297 and $222,975 to replace that employee. Multiply that by 2.5 million and you can quickly see the real cost to our economy.
The questions we need to address are a) why do these people quit? And b) what can we do to keep them from quitting?
In the next section of this report we’ll explore the reasons why people quit and the expectations these people have. In the last section of the report we’ll explore if it is even worth trying to retain these individuals and how to do so effectively.
Don’t forget to enroll in our October 22 Productivity Strategies Webinar.