New York SBDC Research Network

By Roberta Chinsky Matuson From LinkedIn I received a call last week from a CEO who was concerned about the sudden increase in employee turnover in his organization. He couldn't understand why anyone would leave his firm. He then went down a laundry list of perks he recently added, that would have made even Google envious... I see companies spending a ton of money trying to outdo one another in terms of perks and crazy office designs that few appreciate. Tales of kegs being opened at all hours of the day or exotic snacks that are making employees fat seem to be all the rage. Yet, here we are. Employees are less engaged today than back in the sixties when a steady job was the key to engagement. You can access my employee turnover calculator for free. That's right. I won't see the results unless you decide to send them to me, nor will I hound you with follow up email automatically spewed out by some contact management system. All I'm asking here is for you to ta...

BY DIPAK SUNDARAM AND NIRAJ PATEL From Gallup Unfortunately, a common, fatal flaw organizations tend to make is to treat onboarding as a "new employee orientation class" or "the first 30 days," rather than a year-long process that helps employees get up to speed in their job and integrated into their new team and organization. In our experience, it takes 12+ months for most people to get "up to speed" in most jobs. This ramp-up time is when employees learn their role and with the intention of being fully capable of performing all critical functions at a high level... Often, organizations lose one-third to two-thirds of new hires within their first 12 months on the job. Naturally, this varies by role, as about half of all hires for senior positions leave within 18 months, and half of all hourly workers last just four months.

BY SHANE MCFEELY AND BEN WIGERT From Gallup Here's how it breaks down for an individual organization: *The annual overall turnover rate in the U.S. in 2017 was 26.3%, based on the Bureau of Labor Statistics. *The cost of replacing an individual employee can range from one-half to two times the employee's annual salary -- and that's a conservative estimate. *So, a 100-person organization that provides an average salary of $50,000 could have turnover and replacement costs of approximately $660,000 to $2.6 million per year. Fifty-two percent of voluntarily exiting employees say their manager or organization could have done something to prevent them from leaving their job. You may assume their manager did everything they could to make things right, but statistically, that's probably not the case. Over half of exiting employees (51%) say that in the three months before they left, neither their manager nor any other leader spoke with them about their job satisfactio...