High turnover is expensive – the time and money invested in staff who have left will need to be invested again for the training of new staff, and there is the additional cost of time and money spent on recruitment and hiring. Additionally, organizational culture and productivity can suffer if staff turnover is frequent. From a capital perspective (both financial and human), it is important for organizations to focus on employee retention as a part of their business strategy.
According to Gallup, increasing employee engagement boosts productivity and profitability by at least 20 percent.
Compared with bottom-quartile units, top-quartile units have:
- 37% lower absenteeism
- 25% lower turnover (in high-turnover organizations)
- 65% lower turnover (in low-turnover organizations)
- 48% fewer safety incidents
- 41% fewer patient safety incidents (in applicable fields)
- 41% fewer quality incidents (defective products/services)
- 10% higher customer metrics
- 21% higher productivity
- 22% higher profitability
With results like that, it's hard to argue with the investment return in people and in HR as a strategic partner to your success.
Someone recently asked us how to effectively manage stakeholder engagement as part of the strategic planning process for a non-profit. They wanted to launch a new strategic plan and get engagement from their stakeholders so that their strategic plan would last longer than the terms of the existing board members.