Unhappiness from even a small percentage of your employees can easily spread across your organization, resulting in the extremely costly consequences of higher turnover, lower productivity, a negative brand image, and unsatisfied customers. Employees must have a way to constructively express their discontent and know that the company cares about what they have to say.
A retailer with 37,000 employees across 300 stores found that the 25% of stores with the highest employee engagement scores ended the year almost 14% over their profit budget, while the lowest 25% collectively missed their profit goals by 30%*.
Low employee engagement has devastating effects on customer loyalty and employee productivity, but the direct costs of turnover alone are shocking. Companies invest substantial resources towards the painstaking processes of recruiting and training talented employees, and successful organizations cannot afford to have these employees leave due to discontent. According to the Employment Policy Foundation (EPF), a Washington, D.C.-based research group, turnover replacement costs average 25% of the leaving employee’s annual salary*. Average turnover percentages and costs vary across industries, but for a typical large company with 40,000 full-time employees, the difference in annual costs resulting from a 15% turnover rate versus a 25% turnover rate is over $50 million*.
Other research suggests that these figures are extremely conservative. Sibson & Company, a human capital consulting firm, reports that the costs of turnover are closer to 150 percent of the leaving employee’s annual salary when factoring in the company’s handicapped ability to keep current customers, attract new ones, increase productivity or pursue growth opportunities. Sibsom & Company projects that the cost to recoup the loss from just one crew member in a fast food restaurant requires the sales of an additional 7,613 children's combo meals at $2.50 each, while a clothing store must sell almost 3,000 pairs of khakis at $35 to recoup the loss of one sales clerk*.
The good news is that turnover can be reduced dramatically, and we can help.
Employees typically leave managers, not companies*. For example, if your direct manager gives you clear expectations, recognizes your accomplishments, values your opinions, and genuinely seems to care about your well-being, you are significantly more likely to feel positive and loyal towards your company AND motivated to do a great job. An employee engagement program managed by BestMark will:
At BestMark, we recognize that although employee engagement is a common goal across all industries, one size does not fit all when it comes to employee engagement surveys and action planning. We will begin by identifying the unique key drivers of employee engagement within your organization. Depending on your preference, we can achieve this by conducting employee interviews and pilot surveys, or by simply using the data you already have from past employee exit interviews or surveys. Once we have statistically analyzed and identified the key drivers, we will collaboratively design a survey that will uncover the specific opportunities for your company to increase employee engagement. Our partnership with you doesn’t stop there. At BestMark, our mission is not just to provide you with superior surveys, but to ensure that you have the most effective tools possible to turn your data into action.
When you ask your employees for feedback, it is critical that you act on that feedback. Otherwise, you risk driving your already dissatisfied employees right out the door. With that in mind, BestMark created GuestLink, a proprietary web-based reporting system that allows leadership at every level to immediately access their employee engagement results. We even take steps to protect the privacy of your employees to ensure they feel free to express their honest opinions. GuestLink not only provides clear and visually-pleasing reports for every level of your company; it also offers the ability for managers to access and create customized "Action Plans" based on their individual areas of opportunity. In addition, we can incorporate training resources and flash-based web tutorials that will provide specific direction on what managers can do to promote a more engaging work environment.
When we help you integrate employee engagement survey results with other invaluable data sources such as customer surveys, mystery shop programs, and compliance audits, the data will tell a powerful, aligned story that will fuel leadership decision-making and drive loyalty and profits.
Contact Us to learn more about how BestMark can unlock your company’s potential for ever-increasing success.
1. Highest employee engagement scores ended the year over profit budget; lowest missed profit goals. Source: Buckingham, M. & Coffman, C. (1999). First, break all the rules: what the world’s greatest managers do differently. New York: Simon & Schuster.
2. Turnover replacement costs average 25% of the leaving employee’s annual salary. Source: Employment Policy Foundation. (2002, December 3). Employee Turnover–A Critical Human Resource Benchmark. [Online]. http://www.epf.org
3. Difference in annual costs from 15% turnover rate versus 25% is over $50 million. Source: Employment Policy Foundation. (2004, October 22). Factsheet–Turnover Costs -Brief Look at Contemporary Issues in Employment and Workplace Policy. http://www.epf.org.
4. Cost to recoup loss from one crew member in fast food restaurant requires sales of additional 7,613 children's combo, while clothing store must sell almost 3,000 pairs of khakis to recoup loss of one sales clerk. Source: www.morebusiness.com. (2007). [Online]. Retrieved September 15, 2008, from http://www.morebusiness.com/running_your_business/management/d968034020.brc
5. Employees typically leave managers, not companies. Source: Buckingham, M. & Coffman, C. (1999). First, break all the rules: what the world’s greatest managers do differently. New York: Simon & Schuster.