There are a few time-honored ways to hemorrhage a lot of money quickly.
Invest in a sports team. Buy a yacht (better to lease it, in case you were wondering). Go all-in on FTX.
Here’s another: try to replace people who leave your company.
The eye-watering cost of losing your key employees
The Society for Human Resource Management (SHRM) reports that on average it costs a company 6 to 9 months of an employee's salary to replace them.
For an employee making $60,000 per year, that comes out to $30k-$45k in recruiting and training costs. Blurgh.
Meanwhile, HR & People expert Josh Bersin believes the cost of losing an employee can reach 1.5–2.0x the employee’s annual salary. For that same $60k employee, we’re talking $90-$120k in costs. Ouch. Try explaining that one to your CFO.
Why so high? Bersin sees employees as appreciating assets that provide more and more value to the organization over time - hence why losing them is so expensive.
So, if we’re talking high potential or linchpin employees, you may be eating costs of $100k, $200k, $300k, or more… for ONE person.
But here's kicker
In a Gallup study, 52% of voluntarily exiting employees say their manager or organization could have done something to prevent them from leaving their job. Talk about adding insult to injury. It’s like getting food poisoning from your own restaurant. And you’re the one who left the fridge door open last night.
Just one more complicating element to add to this bubbling concoction.
A survey by Willis Tower Watson found that one in three hires will leave a job within two years. This pressures companies to find replacements quickly and eat the high costs involved.
So if 1 in 3 people are going to be gone in 2 years, what to do?
You can either create the conditions for them to stay with you, or maximize the value they create (for both themselves and the org). Even better, both.An unsolvable puzzle? We don’t think so.
The team here at Wavetable have built a first-of-its-kind development program for your key employees.
It’s anchored in leadership skills, knowledge sharing, and building real, live projects that benefit both the individual and the company. It costs less than replacing just one of your best people. And it definitely costs less than the hazy metaverse project that one-time consultant told you was an ‘essential’ investment.
For first access, just get in touch