{"id":12192,"date":"2018-10-30T13:14:02","date_gmt":"2018-10-30T13:14:02","guid":{"rendered":"https:\/\/www.instantoffices.com\/blog\/?p=12192"},"modified":"2018-10-31T13:16:26","modified_gmt":"2018-10-31T13:16:26","slug":"tech-reduce-cost-of-staff-turnover","status":"publish","type":"post","link":"https:\/\/www.instantoffices.com\/blog\/featured\/tech-reduce-cost-of-staff-turnover\/","title":{"rendered":"Businesses Taking High Tech Steps to Reduce the Cost of Staff Turnover"},"content":{"rendered":"<p>Staff turnover has a serious impact on a company, costing time, resources and money. In fact, a report by <a href=\"https:\/\/www.oxfordeconomics.com\/my-oxford\/projects\/264283\" target=\"_blank\">Oxford Economics<\/a> reveals that it costs more than \u00a330,000 on average for a company to replace one employee.<\/p>\n<p>New technologies are playing an increasingly important role in helping to curb turnover and improve staff retention.<\/p>\n<p><a href=\"https:\/\/www.instantoffices.com\/blog\/wp-content\/uploads\/2018\/10\/Can-Technology-Reduce-Staff-Turnover-Instant-Offices.jpg\" target=\"_blank\"><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter wp-image-12193 size-full\" src=\"https:\/\/www.instantoffices.com\/blog\/wp-content\/uploads\/2018\/10\/Can-Technology-Reduce-Staff-Turnover-Instant-Offices.jpg\" alt=\"Can-Technology-Reduce-Staff-Turnover---Instant-Offices\" width=\"1024\" height=\"2792\" srcset=\"https:\/\/www.instantoffices.com\/blog\/wp-content\/uploads\/2018\/10\/Can-Technology-Reduce-Staff-Turnover-Instant-Offices.jpg 1024w, https:\/\/www.instantoffices.com\/blog\/wp-content\/uploads\/2018\/10\/Can-Technology-Reduce-Staff-Turnover-Instant-Offices-110x300.jpg 110w, https:\/\/www.instantoffices.com\/blog\/wp-content\/uploads\/2018\/10\/Can-Technology-Reduce-Staff-Turnover-Instant-Offices-768x2094.jpg 768w, https:\/\/www.instantoffices.com\/blog\/wp-content\/uploads\/2018\/10\/Can-Technology-Reduce-Staff-Turnover-Instant-Offices-376x1024.jpg 376w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/p>\n<h2><span style=\"color: #b1c54f;\">Low Productivity Costs Companies Thousands<\/span><\/h2>\n<p>The Oxford Economics report puts the average cost of replacing a departing employee at \u00a330,614. This figure comes mostly from the loss of productivity caused by the time needed for a new employee to get up to speed in their role, which takes an average of 28 weeks across the board. This period of lost productivity has an attached average cost of \u00a325,181 per employee.<\/p>\n<p>Logistics are also a big factor. Recruitment fees, advertising costs and temp hires also contribute to high turnover costs.<\/p>\n<p>A breakdown of average <a href=\"http:\/\/www.hrreview.co.uk\/hr-news\/recruitment\/it-costs-over-30k-to-replace-a-staff-member\/50677\" target=\"_blank\">logistical costs<\/a> involved in replacing leaving employees:<\/p>\n<ul>\n<li>Recruitment agency fees: \u00a3454<\/li>\n<li>Advertising the newly available job opening: \u00a3398<\/li>\n<li>Hiring temporary workers: \u00a33,618<\/li>\n<li>Time spent interviewing candidates: \u00a3767<\/li>\n<li>HR time spent processing a replacement: \u00a3196<\/li>\n<\/ul>\n<h2><span style=\"color: #b1c54f;\">Industries Feeling the Crunch<\/span><\/h2>\n<p>The legal, accountancy and tech sectors are the hardest hit by turnover costs, followed by media and retail. The average cost per replacement employee in these sectors is as follows:<\/p>\n<ul>\n<li>Legal: \u00a339,887<\/li>\n<li>Accountancy: \u00a339,230<\/li>\n<li>IT &amp; Tech: \u00a331,808<\/li>\n<li>Media &amp; Advertising: \u00a325,787<\/li>\n<li>Retail: \u00a320,114<\/li>\n<\/ul>\n<p>With such large amounts being drained by the cost of employee turnover, it makes sense for companies to improve their focus on staff retention, encouraging employees to stay and grow within the company.<\/p>\n<h2><span style=\"color: #b1c54f;\">The Role of Technology in Reducing Turnover<\/span><\/h2>\n<p>New technologies have emerged with the aim of reducing turnover rates.<\/p>\n<ul>\n<li>Employee satisfaction polling software allows companies to collect data that shows them how their employees are feeling and performing. Examples include <a href=\"https:\/\/www.tinypulse.com\/\" target=\"_blank\">TINYpulse<\/a> and <a href=\"https:\/\/www.polly.ai\/\" target=\"_blank\">Polly<\/a>.<\/li>\n<\/ul>\n<ul>\n<li>Employee recognition and reward platforms improve morale by recognising workers&#8217; achievements and making them feel more appreciated. Examples include <a href=\"https:\/\/youearnedit.com\/\" target=\"_blank\">YouEarnedIt<\/a> and <a href=\"https:\/\/go.kudos.work\/employee-recognition-software-ga?creative=303209842791&amp;keyword=employee%20recognition&amp;matchtype=p&amp;network=g&amp;device=c&amp;campaignid=1504941750&amp;adgroupid=57551725106&amp;gclid=EAIaIQobChMI_eSeqP-R3gIVxLTtCh2xcQdeEAAYAiAAEgI_xfD_BwE\" target=\"_blank\">Kudos<\/a>.<\/li>\n<\/ul>\n<ul>\n<li>Predictive analytics in HR also plays a big role here. Companies like Hewlett-Packard have <a href=\"https:\/\/www.analyticsinhr.com\/blog\/predictive-analytics-human-resources\/\" target=\"_blank\">used predictive models to put together \u201cflight risk\u201d scores<\/a>, predicting which employees are most likely to leave. This helps companies to make more informed decisions around their employee retention efforts.<\/li>\n<\/ul>\n<p>There are also more technologies available today to speed up onboarding and help keep turnover costs in check when employees do leave. Platforms that help with knowledge transfer will allow new hires to adjust more quickly to the company&#8217;s processes and work patterns.<\/p>\n<h2><span style=\"color: #b1c54f;\">Flexible Working and Employee Retention<\/span><\/h2>\n<p>A more flexible way of working can also contribute to better staff retention. Options that allow employees to work remotely or put in flexible hours help to improve work-life balance, which is a top priority for many workers today. In fact, research shows that many workers would <a href=\"https:\/\/www.instantoffices.com\/blog\/featured\/communication-for-remote-teams\/\" target=\"_blank\">choose flexible working over a pay rise<\/a>.<\/p>\n<p>Today&#8217;s technology allows serviced office providers like Instant to set up <a href=\"https:\/\/www.instantoffices.com\/\" target=\"_blank\">fully serviced flexible workspaces<\/a> for small, medium and large businesses looking to reduce operating expenses and turnover costs.<\/p>\n<div style=\"background-color: #b3d334; padding: 20px 0;\">\n<h2 style=\"text-align: center; margin-bottom: 0;\"><strong>Looking for Office Space?<\/strong><\/h2>\n<p style=\"text-align: center; margin-top: 0;\"><span style=\"color: #000000;\">We Operate in Some of the World&#8217;s Top Cities:<\/span><\/p>\n<p style=\"text-align: center;\"><a style=\"color: #3366ff;\" href=\"http:\/\/www.instantoffices.com\/en\/gb\/office-space\/london\">London<\/a>, <a style=\"color: #3366ff;\" href=\"http:\/\/www.instantoffices.com\/en\/us\/office-space\/new-york-city\">New York<\/a>, <a style=\"color: #3366ff;\" href=\"http:\/\/www.instantoffices.com\/en\/us\/office-space\/san-francisco\">San Francisco<\/a>, <a style=\"color: #3366ff;\" href=\"http:\/\/www.instantoffices.com\/en\/fr\/office-space\/paris\">Paris<\/a>, <a style=\"color: #3366ff;\" href=\"http:\/\/www.instantoffices.com\/en\/sg\/office-space\/singapore\">Singapore<\/a>, <a style=\"color: #3366ff;\" href=\"http:\/\/www.instantoffices.com\/en\/hk\/office-space\/hong-kong\">Hong Kong<\/a>,<br \/>\n<a style=\"color: #3366ff;\" href=\"http:\/\/www.instantoffices.com\">Search more locations<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Staff turnover has a serious impact on a company, costing time, resources and money. In fact, a report by Oxford Economics reveals that it costs more than \u00a330,000 on average for a company to replace one employee. New technologies are playing an increasingly important role in helping to curb turnover and improve staff retention. Low Productivity Costs Companies Thousands The Oxford Economics report puts the average cost of replacing a departing employee at \u00a330,614. This figure comes mostly from the loss of productivity caused by the time needed for a new employee to get up to speed in their role, which takes an average of 28 weeks across the board. This period of lost productivity has an attached average cost of \u00a325,181 per employee. Logistics are also a big factor. Recruitment fees, advertising costs and temp hires also contribute to high turnover costs. A breakdown of average logistical costs involved in replacing leaving employees: Recruitment agency fees: \u00a3454 Advertising the newly available job opening: \u00a3398 Hiring temporary workers: \u00a33,618 Time spent interviewing candidates: \u00a3767 HR time spent processing a replacement: \u00a3196 Industries Feeling the Crunch The legal, accountancy and tech sectors are the hardest hit by turnover costs, followed by media and retail. The average cost per replacement employee in these sectors is as follows: Legal: \u00a339,887 Accountancy: \u00a339,230 IT &amp; Tech: \u00a331,808 Media &amp; Advertising: \u00a325,787 Retail: \u00a320,114 With such large amounts being drained by the cost of employee turnover, it makes sense for companies to improve their focus on staff retention, encouraging employees to stay and grow within the company. The Role of Technology in Reducing Turnover New technologies have emerged with the aim of reducing turnover rates. Employee satisfaction polling software allows companies to collect data that shows them how their employees are feeling and performing. Examples include TINYpulse and Polly. Employee recognition and reward platforms improve morale by recognising workers&#8217; achievements and making them feel more appreciated. Examples include YouEarnedIt and Kudos. Predictive analytics in HR also plays a big role here. Companies like Hewlett-Packard have used predictive models to put together \u201cflight risk\u201d scores, predicting which employees are most likely to leave. This helps companies to make more informed decisions around their employee retention efforts. There are also more technologies available today to speed up onboarding and help keep turnover costs in check when employees do leave. Platforms that help with knowledge transfer will allow new hires to adjust more quickly to the company&#8217;s processes and work patterns. Flexible Working and Employee Retention A more flexible way of working can also contribute to better staff retention. Options that allow employees to work remotely or put in flexible hours help to improve work-life balance, which is a top priority for many workers today. In fact, research shows that many workers would choose flexible working over a pay rise. Today&#8217;s technology allows serviced office providers like Instant to set up fully serviced flexible workspaces for small, medium and large businesses looking to reduce operating expenses and turnover costs. Looking for Office Space? We Operate in Some of the World&#8217;s Top Cities: London, New York, San Francisco, Paris, Singapore, Hong Kong, Search more locations<\/p>\n","protected":false},"author":1,"featured_media":12194,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,214],"tags":[164,489,138],"class_list":["post-12192","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-growth","category-featured","tag-employee-retention","tag-staff-retention","tag-technology"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Can Technology Improve Employee Retention &amp; Reduce Staff Turnover? - Instant Offices Blog<\/title>\n<meta name=\"description\" content=\"We look at the average cost to replace an employee and the role of technology in reducing staff turnover. Improve employee retention with technology.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.instantoffices.com\/blog\/featured\/tech-reduce-cost-of-staff-turnover\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Can Technology Improve Employee Retention &amp; Reduce Staff Turnover? - Instant Offices Blog\" \/>\n<meta property=\"og:description\" content=\"We look at the average cost to replace an employee and the role of technology in reducing staff turnover. 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