Turnover is expensive. The cost of replacing an employee can be up to twice their salary, according to the Society for Human Resource Management. That’s why it’s so important for companies to keep their employees happy and engaged.
Employee retention has a direct impact on the bottom line. A study by the Work Institute found that replacing an employee who earned less than $30,000 a year costs the company 16% of their annual salary. For those earning $75,000 or more, the cost jumps to 213%.
There are a number of factors that contribute to the high cost of turnover. The most obvious is the direct costs associated with recruiting and training new employees. But there are also indirect costs, like lost productivity while a position is vacant, or the negative impact on morale when long-time employees see their colleagues leaving.
High turnover can also damage a company’s reputation. Job seekers are increasingly using social media to research potential employers, and bad reviews can dissuade top talent from applying for open positions.
There are a number of things companies can do to reduce turnover and keep their best employees. One is to offer competitive pay and benefits. Another is to provide opportunities for career growth. And one of the most effective retention strategies is to offer flexible work arrangements.
Flexible work arrangements are a win-win for employees and employers. Employees get the opportunity to design a work schedule that fits their needs, and employers get the benefit of retaining their best talent. One often overlooked solution is job sharing. Job sharing is when two employees split the duties of one full-time position between them. It’s a flexible arrangement that can offer many benefits to both employees and employers.
For employees, job sharing can provide a better work-life balance. It can also be a way to stay in the workforce after starting a family or returning from parental leave. For employers, job sharing can help reduce turnover and save money.
A study by the Families and Work Institute found that employees who have a good work-life balance are more likely to stay with their company. And retention is key to saving money. The cost of replacing an employee is high, but the cost of losing a top performer is even higher.
According to Roleshare, job sharing can also help improve communication and collaboration among team members. When two people are sharing a role, they need to be in constant communication with each other. This can lead to better communication overall within the team.
In addition to reducing turnover, job sharing can also help save money on training costs. When employees leave, companies have to spend money on training their replacements. But when employees stay, they can keep their skills up to date and help train new hires.
If you’re looking for ways to save money and retain your best employees, consider job sharing.