Morale & Retention

Creating a culture of wellness may improve employee morale and retention, too.

Better morale from wellness

Since employee morale and employee turnover are inversely related, the more a company invests in and successfully boosts morale, the lower its turnover will be.

It's common sense: an energized, happy, workforce is a more productive, more loyal workforce. Therefore, a worksite wellness program should be an integral part of building a culture of vitality, energy, teamwork, and elevated morale.

Four main costs of turnover

Consider the four main costs of turnover:

•     Costs of termination - HR/Management time and stress
•     Replacement and recruiting costs
•     Vacancy cost of having other employees carry the burden
•     Lost productivity ramp-up of new hire

Turnover costs estimator

Now let's estimate the costs.  Here's a simple way:

•     Take the number of employees you lose per year 
•     Multiply by your average salary per employee 
•     Multiply by 30% (a conservative estimate of the four variables above)

So, a company that churns 100 employees per year, at an average salary of $50,000 per year, loses $6.5 million due to turnover.

If the company were able to reduce turnover by 10%, it would save $650,000 per year.