Studies show that the average cost to replace a mid-level employee can reach upwards of 150% of their annual salary. Not only are there direct financial costs associated with recruiting, hiring, and training a new employee, there are also the indirect emotional costs on the remaining team, too.
A constant revolving door of employees has a direct effect on employee morale that inadvertently creates a culture of disengagement and fear, which in turn, affects productivity and the bottom line. By developing a strong corporate culture that puts high importance on employee engagement and recognition, organizations are able to combat high turnover rates. In fact, engaged employees are 87% less likely to leave an organization.