How to reduce the hidden cost of employee turnover
Although turnover in the credit union industry has remained steady at about 12 percent for the last three years, in some regions like the Southwest, it has climbed as high as 19 percent. And while some turnover can be good for a company, giving you the opportunity to bring in new talent, it still has a massive financial impact on the industry.
A recent study by the Cornerstone Credit Union League showed that turnover in Arkansas, Oklahoma and Texas credit unions cost them more than $68 million in 2013. And if you consider that it costs between 50 and 150 percent of an employee’s salary in replacement costs, we could be looking at numbers into the low billions industrywide.
The three main reasons employees are leaving credit union jobs? Better pay, opportunities to advance and dissatisfaction with managers. Here’s what you can do to reduce them.
In 2011, the Ron Volper Group conducted a cross-industry study that confirmed that dissatisfaction with compensation was the number one reason for turnover. And, the study continued, 80 percent of employees who moved to a new company did so to take a higher paying position.continue reading »