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Loyalty

EUCUSA can reduce your employee turnover costs.

With just one percent reduction in employee churn,
an EUCUSA survey will pay for itself in 5 days. *

 

The loyalty of high-performing employees is a key success indicator when it comes to your human resources management. The most easily measurable variable to determine the failure of loyalty is the employee turnover rate. But it is just as important to assess the true cost of turnover in order to measure the tremendous financial impact of improvements in this area.

True cost of employee turnover
Turnover costs include, among others, the cost of the individual leaving the company (productivity loss 50% to 100%, cost of temporary replacement, management costs, compensation and exit costs, lost knowledge, impact on departmental productivity), recruitment costs (ads, internal searches, time spent in interviews and resume reviews, explaining the role, coordinating managers, opportunity costs of internal resources), training costs (cost of both trainee’s and trainer’s time, training materials, external courses, supervisor time and associated productivity cost), lost productivity cost (starting lower productivity of new hire, time of coworkers for helping new hire, cost of mistakes, delay or cancellation of critical projects of departing employee, manager’s additional work), new hire costs (setup costs, such as business cards, telephone, etc., management time), and perhaps lost sales costs (customers leaving with departing employee).

How to reduce employee turnover
An associate survey that is correctly designed and implemented in a professional and respectful manner will have positive effects on employee loyalty.

One side of the effect is obvious: the data gathered in the survey will help identify improvement areas that can be addressed to prevent or alleviate employees’ issues with work conditions, interaction with management and other factors.

But there is another important effect that is often overlooked: the intervention of the survey itself, provided it is carried out with a due measure of respectfulness and endorsed by top management (that is using it as an opportunity to honestly and openly communicate with the associates), will reinforce this positive effect on loyalty.

Best of all, the cost of such an intervention is trifling in comparison to the true cost of employee turnover. However, it is important to guard against superficial or semi-professional survey implementations, as these can be costly in more than one way: first, they could miss the loyalty effect; second, they might even backfire by not meeting raised expectations and cause a multiple of the costs previously saved by employing survey methodology and processes below the EUCUSA standard.

* Employee churn calculation based on company with 1.000 employees and average salary of 25.000 Euros.