Park City, Utah (PRWEB) December 30, 2013
Today, Zane Benefits, the number one online small business health benefits solution, published new information on calculating HR employee retention rates.
According to Zane Benefits’ website, when it comes to employee retention strategies, it is recommended that HR departments track specific measurables. By tracking statistics such as employee retention rates and turnover cost, they have a way to measure the effectiveness of new HR initiatives such as a formal on-boarding program or starting to offer health benefits.
This article provides an overview of how to calculate HR employee retention rates, why employee retention strategies matter, and a best practices checklist for employee retention.
Employee retention rate is a helpful statistic for an employer to calculate – both as a benchmark and periodically. The formula is simple. Divide the number of employees who left during a period by the total number of employees at the end of a period to get the percentage.
Standard employee retention rates are anywhere from 70% - 85% but vary greatly by industry and calculation method.
Turnover disrupts the flow of a functioning workforce. When an employee leaves there can be a significant knowledge gap left, creating more work as the remaining team members pick up the pieces.
Recruiting and training a new employee requires staff time and money. Every time a business replaces a salaried employee, it costs on average 6 to 9 months in salary. For a manager making $40,000 a year, that's $20,000 to $30,000 in recruiting and training expenses, along with other intangibles.
While some turnover is inevitable, having an intentional employee retention strategy in place mitigates the turnover, and these costs, for a small business.
About Zane Benefits
Zane Benefits was founded in 2006 to provide a revolutionized SaaS (Software-as-a-Service) administration platform ("ZaneHealth") for defined contribution health care. The flagship software provides a 100% paperless administration experience to small businesses and insurance professionals that want to offer better health benefits without a traditional group health insurance plan at lower costs. For more information about Zane Benefits, visit http://www.zanebenefits.com.