Staff Loyalty Valued At A Quarter Of Average UK Salary
New research published in the annual Loyalty Premium Report has quantified the cost saving of staff loyalty, and the figure rolls into the thousands.
The research, published by One4All Rewards, looked into the costs involved in staff departures and the average UK salary of £27,645 to calculate the monetary value of loyalty.
The figure stands at £6,335.31 per employee, or 23% of the average UK wage.
This is calculated by looking at the average UK salary, average notice period, recruitment fees for hiring replacements, a loss of productivity as the new member of staff is recruited and then trained and other costs.
Declan Byrne, Managing director at One4All Rewards commented “most employers know that having staff resign is not only inconvenient but also costly. But the combined total of the recruitment costs, productivity losses and more that are associated with this may come as a bit of a shock, and it is no meagre sum.
To avoid such costs mounting up, it is important that businesses take employee morale seriously, and actively take steps to ensure staff feel happy, motivated and appreciated. Even something as simple as an annual token of appreciation, such as a bonus, can go a long way.”
Additionally, the research also revealed the three most significant aspects that play a part in an employee’s decision stay at a company for the long term, i.e. five or more years.
- A nice working environment
- Regular pay increases
- Long term benefits such as pensions
As well as these, bonuses and gift cards were also key for 1 in 3 workers.
Managing Your Workforce to Encourage Loyalty
For businesses wanted to keep their employee turnover level low, as well as limit the costs of recruitment, IRIS HR will be perfect for you.
IRIS HR contains a number of powerful reporting features, employee benefits monitoring and payroll records which, when combined, will help you keep your employee turnover at a low level. You’ll be able to identify gaps in skills and knowledge, meaning working environments will improve as skills and know-how are more evenly divided, and keep on top of your benefits and pension packages to not only attract new talent, but also reward your current employees.
Speak to IRIS today about IRIS HR and learn how self-service HR software can help your business thrive.
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