It’s no secret tech has the highest turnover rate – 13.2% – of any industry. High demand and a shrinking talent pool are making it difficult for companies to keep their star performers from leaving. This turnover costs companies dearly– as much as 213% of a senior or executive employee’s annual salary, according to the Center for American Progress.
The Workplace Significantly Impacts Employer Satisfaction for Tech Talent
Lack of advancement and institutional roadblocks to innovation are frequently cited as reasons for the high tech turnover rate. What’s rarely discussed, however, is how the workplace environment can serve as a tool that either supports retention or helps to push the best and brightest out the door. Compared with other industries, tech employees are more likely to say that workplace design and amenity offerings, like on-site conveniences, greatly impact their employer satisfaction, which is key to improving retention.
Could Your Workplace Be Saving Your Company $2 million+ per Year?
There’s no single turnover panacea, but even conservative solutions can have a major impact on the bottom line. Let’s say your workplace could help reduce turnover by 10%. Some simple calculations reveal the profound financial impact that lowering turnover rates could have.
You have a 500 person company and lost 65 employees last year, meaning your annual turnover rate is 13%, right on par with the average for tech. We’ll estimate the average salary for these employees is $150,000. Using CAP’s figure of 213%, this means annual employee turnover could cost your company as much as $20.8 million. If a high quality workplace reduces your turnover rate by just 10%, it saves your company $2 million+ per year– and that’s without considering a single part of your current employee engagement and training model.
Is your business making the most of your workplace? From 2019’s hottest design trends to maximizing outdoor space benefits, make your workplace work for you and learn more about solving the retention puzzle.