↗️ How Coaching affects Retention! |

Is turnover a headache in your team?

In this post, I share a few staggering facts that every Leader should know about employee retention and turnover.

I also make the connection why a more involving leadership style like coaching is a very good way to address main causes of voluntary turnover!

1️⃣ The Cost of Turnover is Immense!

In relation to annual salary, the employee replacement cost (ERC) typically is

• between 30-50% for entry-level roles!

• around 150% for mid-level employees!

• 400% or more for high-level and specialized roles!!

This means that replacing a specialist with an annual salary of USD 250000 may cost you around 1 million USD! These crazy costs are REAL. They are a combination of hard admin and soft productivity costs, incurred by going back to square 1 with a new person.

(Source)

2️⃣ The normal Turnover Rate is Significant

Also real is the typical annual turnover rate of 10-20% across industries…and ~70% of that is voluntary, i.e. somewhat preventable.

This means that in an organisation of 1000 people, you may expect 150 people to leave in any given year…and 100 of those are voluntary!!

(Source)

3️⃣ The Top Reasons for voluntary leaving are well understood

The usual suspects for reasons WHY people voluntarily leave are no strangers and well understood:

1. Limited Personal Growth

2. Feeling Underpaid

3. No longer challenged

4. Feeling undervalued

5. Bad fit with corporate culture

(Source)

How surprising is this for you?

4️⃣ Our choices as Leaders are clear.

We can invest now, or pay up a much higher price later. We can be proactive by working on these 5 needs or reactive by paying the steep price of negligence.

The best thing? Coaching skills can help to address all these reasons above!

How?

1. Limited Personal Growth: The whole purpose of coaching is growth!

2. Feeling Underpaid: Coaching helps address pay in a direct + caring way.

3. No longer challenged: Coaching can identify exciting, surprising goals.

4. Feeling undervalued: Coaching makes people feel understood and valued.

5. Bad fit w/ corporate culture: A coach can uncover the actual challenges.

The great news: This can be learned and the impact of coaching on retention is almost immediate and tangible.

(Source)

Also note this week’s podcast episode on this very topic (www.intellicoach.com/ep83). Enjoy!

Maik