As this organization was enjoying a 63% growth in revenues, they also saw their turnover increase by 75% in 18 months, climbing from 20 to 35%. They calculated employee replacement costs to conservatively be $1.2 million – if calculated at the minimal level of annual compensation, they felt that loss would be closer to $14 million. After experiencing a one-year churn of nearly 35% of their employees (67% of whom were ‘quick quits’) in the midst of significant and unprecedented changes and growth, they recognized that not only was it costing them financially, but that it was also threatening their standards of excellence in quality, efficiency, and customer satisfaction.
CSI partnered with the organization to develop and deliver a strategic approach at employee engagement and retention, starting with an organizational survey, the Engagement Edge, which established a base-line and was delivered annually for several years to ensure continuing impact. Love ‘Em or Lose ‘Em® workshops were delivered to all North American leaders; each leader received their unit’s results from the Survey and had post-workshop assignments to conduct at least two ‘Stay Interviews.’ To ensure continued progress, strategy sessions followed for managers afterwards to assess Stay Interview results and strengthen their skills. Ongoing coaching is provided and managers continue to be accountable for talent results.
$800,000 annualized cost savings was immediately achieved based on a 50% decrease in turnover (from 35.4% to 17.9%). Revenue continued to increase at a rate of 63%, as did headcount at 37%, while quality substantially improved and the organization realized an additional $652,000 savings in improved efficiencies.