Employees Overboard: Why Employees Jump Ship and How Much It's Costing Companies

in EMPLOYEES OVERBOARD: why employees jump ship and how much it's costing companies We asked gainfully employed professionals what would convince them to change employers. Then we asked professionals who recently changed employers what compelled them to make the change. Their responses differed: What would convince them to change employers What compelled them to change employers 1 Better compensation/benefits 1 Greater opportunities for advancement 2 Better work/life balance Better leadership from senior management 3 Greater opportunities for advancement 3 Better compensation/benefits EXIT MANAGER QUIT! %24 Annual turnover across countries Lots of professionals leave their employers for preventable reasons. = Annual average company turnover = % that was voluntary and preventable' 12.6% 17% India 10.3% 15% U.S. 8.3% 12% Canada 7.7% 12% Australia 7.3% 11% UK How much voluntary and preventable turnover costs companies annually: Average employee Average employee's X replacement cost X annual salary x 10,000 x Annual preventable turnover % (1.5X their salary) employees Average employee's annual salary Annual savings Average cost of preventable turnover to employer from a 1% reduction in preventable turnover 600K (INR) 1.13B (INR) 90M (INR) India $50K(USD) $75M (USD) $7.5M (USD) U.S. $50K (CAD) $62M (CAD) $7.5M (CAD) Canada $65K (AUD) $75M (AUD) $9.75M (AUD) Australia £30K (GBP) £33M (GBP) £4.5M (GBP) UK Clearly retention is as key to a company's success as hiring top performers Linked in. Talent Solutions To receive future LinkedIn reports and best practices on retention and internal mobility, register here: Inkd.in/retention ' Voluntary & preventable turnover: Employees who were not forced to leave by their employer; they chose to leave due to reasons within the company's control (e.g., neither fired, laid off, nor left due to retirement or health reasons). 2 Turnover costs: All numbers are estimates for a 10,000-employee company. Average employee replacement cost: 1 to 3X an emplo s salary. Sources: Linkedin 2014 Talent Trends Report, 18,000 respondents, 26 countries. Inkd.in/talent-trends Linkedin Exit Survey, 7,530 respondents, US, Canada, UK, Australia, India. Inkd.in/exit-survey