Training ROI Calculator
Business Challenge: Employee Turnover
Get a calculated solution that can benefit your organization and save your business money!
Gallup’s 2017 State of the American Workplace report found that 51% of people in the workforce are either actively looking for new job opportunities, or at least keeping their eyes open for something else to come along.
With that many people ready to leave their organizations, the costs related to employee turnover start adding up quickly. The effects of losing talented people are widespread, from monetary costs to culture costs, and an organization that doesn’t take steps to turn around a turnover trend will quickly start seeing the negative effects compounding.
Employees leave companies for a number of reasons, but multiple surveys have found consistencies in top reasons why talented people walk out on their employers…
A Closer Look at the Problem
Employee turnover itself is not the problem – it’s a symptom of deeper issues. Most commonly, those issues that cause people to leave are a lack of quality onboarding, discontent with managers, and a lack of ongoing development or advancement opportunities.
IBM found that employees who can’t see themselves achieving their career goals with their current organization are 12 times more likely to leave than those who can. With new employees, that stat escalates to 30 times more likely to leave. That means ongoing development must be present from the start, or your talented new employees won’t be yours for long.
Insufficient training during onboarding indicates to employees that they can expect development opportunities to be lacking down the road – 40 percent of people who don’t experience a quality onboarding process are likely to leave the company within a year.
Since managers play a large role in retaining talent, neglecting training and development has a big impact on how well they’re able to lead and interact with their teams.
Companies that want to reduce employee turnover but aren’t focused on how well they’re developing their people are missing the biggest factor in retaining talent.
So, how costly is this issue in your organization?
Cost to Your Organization
The Center for American Progress released a report showing that for employees earning an annual salary of $75,000 or less, the average cost of turnover was approximately 20% of their salary. For salaries over $75,000, that percentage starts increasing – up to 213% for highly skilled executives!
What goes into turnover costs? Direct costs could include severance pay, exit interviews, temporary staffing, and replacement costs to recruit and onboard new employees. Some indirect costs could include lost productivity, lower quality work from ramping employees , reduced morale, and even lost clients.
This calculator defaults to using a 20% cost of turnover per salary. If you know your organization’s custom rate, feel free to adjust this field:
On to the savings...
Does that number make you cringe? Well, don’t worry – the bad news is over. Let’s move on to the exciting part – seeing how much you can reduce turnover by offering the training and development your talented people are looking for.
Providing ongoing development addresses the main issues of why people leave their company. Managers’ abilities to lead are continually improved, and individual contributors receive the growth opportunities they expect from an employer.
On-demand training solutions are particularly effective, since they provide the self-directed approach to learning that high-performing employees seek out. Offering on-demand learning to employees through a solution like The BizLibrary Collection has been proven to help organizations drastically reduce turnover. BizLibrary clients who’ve implemented these solutions have seen turnover rates drop anywhere from 15% to 87%!
Manufacturing — reduced turnover by 15%
Professional Tech Services — reduced turnover by 87%
Marketing & Advertising — reduced turnover by 20%
Many other companies are seeing the effects of training on turnover rates, with one hotel’s new training program reducing company-wide turnover by 14%.
Are you ready to see how implementing on-demand learning solutions can crush the cost of high turnover in your organization?
Savings for Your OrganizationUse the slider to see how much reducing your employee turnover rate will save your organization.
Choose a percentage of turnover reduction:
Now for the ROI:
The average cost to provide online employee training for 0 employees is $0 per employee per year.
And that’s only when you account for employee turnover—not the countless other ways in which training can save your organization money.
There’s surefire proof the investment in your employees’ development is worth it!