Reduced staff turnover savings in a digital workplace
This is the third in my series of posts showing examples of the savings organisations have made by shifting work to a digital workplace. It draws on my previous posts on how you need to plan your strategy, governance, and management of content, tools, and services for a digital workplace. This is essential to transform your intranet into a digital workplace. The previous posts covered productivity savings and reduced absenteeism.
I will be using examples from the Digital Workplace Group‘s report ‘What is the financial value of investing in digital working?‘ that show what organisations taking the right approach can achieve. This example covers how reduced staff turnover can improve engagement save costs impacting on your organisation’s financial bottom line.
How to reduce staff turnover
- Performance management where you are measured on outcomes rather than time spent at work
- Having the right collaboration tools in place with a good governance framework in place is needed
- Having the right tools to connect from a hub, home or while on the move keeps you in touch with everyone
What organisations can achieve
- Recent studies have found clear links that show new ways of working have a positive impact on staff turnover.
- The value of reduced turnover from people telework for half the week is estimated at an annual $3,350 per teleworker.
- If a quarter of a business’ workforce leaves each year, and the average pay is $35,000, it could easily cost a 1,000-person organisation $4m – $10m a year to replace employees.
- Employees with flexible working arrangements are more likely to be satisfied, productive and committed – and stay with their employer in the long term.
- The digital workplace is a key component in reducing absenteeism through flexible work options.
- More than 91% of Cisco’s 2,000 survey respondents say being able to telework issomewhat, or very, important to their overall satisfaction.
- In a 2009 survey by the Society for Human Resource Management, 80% of HRprofessionals felt that flexible work arrangements have a positive impact on employee retention. Some 75% felt it helps them attract employees. And 86% felt it improved employee commitment.
- In Accenture’s 2012 Women’s Research – The Path Forward, 64% of respondents said that they stay in a job longer if offered flexible working.
- Canada’s Top 100 employers competition has found that employees who are given the option to telecommute report greater loyalty.
- 82% of Fortune Magazine’s 100 best companies to work for in 2011 offer telecommuting opportunities to workers.
(Note: Opinions expressed in this article and its replies are the opinions of their respective authors and not those of DZone, Inc.)