Dominic S.
Toxic Organizational Culture: Culture Transformation (2 of 2)
The Urgency of Culture Transformation: Why Waiting is Not an Option You've done the hard work of identifying the toxic elements in your...
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The Cost of Turnover
Research findings on the cost of Turnover by SHRM and Gallup:
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Entry-level – 50% of entry-level average salary - Replacing an employee with the average salary of 60k costs a business $30,000 per employee
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Mid-level – 150% of mid-level average salary - Replacing an employee with the average salary of 85k costs a business $127500 per employee
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Executive & Tech – 250% of Exec/Tech average salary - Replacing an employee with the average salary of 150k costs a business $375,000 per employee
These costs include loss in productivity from time vacant, along with H.R. and onboarding costs. They don’t include the cost of bringing an employee up to full productivity.
(Gallup)
Research
Impact of High Engagement
Highly engaged business units realize an 81% reduction in absenteeism and a 14% increase in productivity
(Gallup)
Gallup's most recent employee engagement meta-analysis of 112,312 business units found that teams scoring in the top quartile on employee engagement saw the following benefits compared with bottom-quartile teams:
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10% higher customer loyalty/engagement
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23% higher profitability
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18% higher productivity (sales)
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14% higher productivity (production records and evaluations)
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18% lower turnover for high-turnover organizations (those with more than 40% annualized turnover)
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43% lower turnover for low-turnover organizations (those with 40% or lower annualized turnover)
(Gallup.com/workplace The World's $7.8 Trillion Workplace Problem)
Continuous Development
Coaching / Performance Management ROI:
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Companies that offer training alone experience a 22.4% increase in productivity, but when combined with coaching that figure rises to 88%. Gerald Olivero, Denise Bane & Richard Kopelman, Public Personnel Management.
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A conservative estimate of the monetary payoff from coaching, according to Fortune magazine, is that managers describe an average return of more than six times the cost of coaching.
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Companies that combine coaching with training increase employee productivity by over 80%.
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Bureau of Justice statistics, June 2001. A Manchester, Inc. study in 2001 demonstrated a 7-fold return on investment from coaching.
(Forbes)
Impact of Burn-out
Employees who say they very often or always experience burnout at work are:
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63% more likely to take a sick day
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23% more likely to visit the emergency room
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2.6x as likely to be actively seeking a different job
Employee Recognition
90% of employees say that recognition is what helps drive more engagement in the workplace, yet nearly 8 out of 10 employees resign due to not being recognized enough...
(Sparckco)
Research by Gallup
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Highly Engaged Employees Result in a 23% Increase in Profitability
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Engaged Employees Reduce Absenteeism by 41%.
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Highly Engaged Businesses Achieve 59% Less Turnover
Culture Statistics from Editor's Choice
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Millennials prioritize ‘people and culture fit’ above everything else.
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Team leaders have the highest impact on company culture.
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Having highly engaged employees can lead to a 202% increase in performance.
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69% of employees would work harder if they received more recognition.
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Around 63% of US companies find it harder to retain than to hire workers.
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A culture that attracts high-caliber employees leads to a 33% revenue increase.
Industries with higher turnover than average include:
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Retail & customer service (38%)
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Food, beverage, & hospitality (38%)
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Healthcare & social assistance (28%)
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Manufacturing (27%)
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Construction (25%)
(payscale)
Industries with a higher percentage of voluntary turnover than average:
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Include retail & customer service (49%)
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Food, beverage, & hospitality (47%)
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Education (42%)
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Finance & insurance (38%)
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Agencies & consultancies (37%)
(payscale)
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