Employee turnover is a costly challenge for organizations, with both direct and indirect expenses adding up quickly. A municipality client approached Kapnick to uncover the root cause of their high turnover and reduce its financial impact. By identifying pain points and implementing tailored solutions, we helped them address this critical issue.
THE PROBLEM: HIGH EMPLOYEE TURNOVER COSTS
Employee turnover can have serious financial and operational implications. Direct costs include recruiter fees, interview expenses, signing bonuses, and onboarding. Indirect costs, such as reduced productivity, lost work time for trainers, and morale damage, further compound the issue.
The Numbers:
- According to Gallup, replacing an employee can cost 50% to 200% of their annual salary.
- In 2017, the U.S. turnover rate was 26.3%, costing a 100-person organization with an average salary of $50,000 between $660,000 and $2.6 million annually.
- By 2021, the turnover rate rose to 57.3%, increasing potential costs to $1.4 million to $5.7 million for the same organization.
THE SOLUTION: IDENTIFYING PAIN POINTS
To reduce turnover, Kapnick first worked with the client to identify their unique pain points. We implemented phone-based exit interviews to gather data on why employees were leaving. Once enough insights were collected, we collaborated with the municipality’s leadership to design programs aimed at retaining top talent and lowering turnover costs.
Want to Learn More?
Kapnick can help your organization tackle high turnover rates and reduce costs. Contact us at to explore how our tailored solutions can benefit your team.
