{"id":12469,"date":"2018-07-27T15:57:49","date_gmt":"2018-07-27T19:57:49","guid":{"rendered":"https:\/\/www.resourcepro.com\/insurance-talent-development-solution-employee-turnover\/"},"modified":"2024-07-15T10:14:38","modified_gmt":"2024-07-15T14:14:38","slug":"insurance-talent-development-solution-employee-turnover","status":"publish","type":"post","link":"https:\/\/www.resourcepro.com\/blog\/insurance-talent-development-solution-employee-turnover\/","title":{"rendered":"What Was Management Thinking? The Real Cost of Employee Turnover"},"content":{"rendered":"

Susan Jennings<\/a> is a Regional Executive at ReSource Pro with over two decades of experience. Susan works with new clients to identify their needs and align solutions to business objectives. When not working or traveling, you can find her in Houston spending time with her family.<\/em><\/p>\n

What is your insurance organization doing to keep its employees?<\/strong><\/h2>\n

The cost of employee turnover is staggering \u2013 much higher than most realize.<\/p>\n

Adding to the urgency of the matter, the insurance industry is in the midst of a talent crunch<\/a> that worsens the impact of each departing employee. A survey<\/a> by The Institutes finds that among millennials, who make up a majority<\/a> of the workforce, just 10% are \u201cvery interested\u201d in pursuing a career in insurance. Despite this quickly approaching talent drought, a Deloitte report<\/a> states that 28% of insurance industry companies have no retention strategy or an outdated one.<\/p>\n

But it\u2019s not too late to change.<\/p>\n

The first step in creating a strong, sustainable talent strategy in this challenging environment is to understand the costs involved<\/a>  when employees leave. (Calculate your own costs with SHRM\u2019s spreadsheet<\/a>.)<\/p>\n

Here are five areas you should analyze to better understand the cost of unplanned employee attrition:<\/p>\n

    \n
  1. Recruiting <\/strong>\u2013 These are your advertising costs, interview resources (time taken away from your management and leadership), screening and testing (drug tests, Personalysis, Caliper, etc.) and placement fees.
    \n.<\/span><\/li>\n
  2. Training <\/strong>\u2013 Employee success depends on training. It\u2019s important to note that ongoing training has less friction than training a brand new employee. Think about riding a bike \u2013 the hardest part is getting the bike going. Once you’re in motion, it\u2019s much easier to keep moving. High turnover creates a huge strain on your HR team and beyond.
    \n.<\/span><\/li>\n
  3. Loss of Productivity<\/strong> \u2013 When an employee leaves an organization, productivity levels for that position will likely dip until the new team member is hired, trained and up to speed. But what about the period of time before<\/em> the person leaves? You\u2019ve seen it: the glazed over look of someone who is \u201cchecked out\u201d weeks before actually leaving. Though it\u2019s human nature to disengage, it can lead to loose ends and sloppy work, which will eventually need to be handled by someone.
    \n.<\/span><\/li>\n
  4. Rework Costs<\/strong> \u2013 Mistakes happen. Industries like insurance inherently have high levels of manual processing, which creates more opportunities for error. Couple that with inexperience and there\u2019s a potential for enormous costs from having to redo work that has already been done, or worse, an issue resulting in an E&O claim.
    \n.<\/span><\/li>\n
  5. Set Up and Equipment<\/strong> \u2013 Preparing phones, computers and more for a new hire requires, at the minimum, IT resources. If you\u2019re buying new equipment, that\u2019s another cost to add to the list. And don\u2019t forget the new licenses and access credentials that they may need.<\/li>\n<\/ol>\n

    \"\"<\/p>\n

    What You Can Do Right Now<\/strong><\/h2>\n

    Do the math and it becomes clear that employee turnover is costly to both the bottom line and for employee morale. While you can\u2019t always control planned employee turnover, you can certainly minimize it. But how?<\/p>\n

    The answer is simple: hold onto your people.
    \n<\/strong><\/p>\n

    Improving employee retention is a big undertaking. Every organization has a unique culture that drives behavior. Examine the culture and when the old ways no longer match the future vision, don\u2019t hesitate to change.<\/p>\n

    Calculating<\/a> the costs of employee turnover can be a good way of illustrating the problem and building consensus for change. Evaluate and analyze the share of resources dedicated to attracting new talent compared to retaining experienced and productive employees. Also consider an anonymous employee survey to understand what\u2019s working (and what\u2019s not) within your organization.<\/p>\n

    In my next post, we\u2019ll discuss surveys and other actionable tips for keeping your best people.<\/p>\n

    Learn more about ReSource Pro\u2019s Talent Development solutions<\/a><\/em><\/h3>\n","protected":false},"excerpt":{"rendered":"

    The facts: only 10% of Millennials are \u201cvery excited\u201d to work in the insurance industry. The good news: it\u2019s not too late to make a change!<\/p>\n","protected":false},"author":6,"featured_media":12470,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[1],"tags":[],"news-category":[],"insurance-segment":[],"services":[],"type-of-content":[38],"resource-type":[],"class_list":["post-12469","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","type-of-content-blogs"],"acf":[],"publishpress_future_action":{"enabled":false,"date":"2026-04-19 11:10:03","action":"change-status","newStatus":"draft","terms":[],"taxonomy":"category","extraData":[]},"publishpress_future_workflow_manual_trigger":{"enabledWorkflows":[]},"_links":{"self":[{"href":"https:\/\/www.resourcepro.com\/wp-json\/wp\/v2\/posts\/12469","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.resourcepro.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.resourcepro.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.resourcepro.com\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.resourcepro.com\/wp-json\/wp\/v2\/comments?post=12469"}],"version-history":[{"count":1,"href":"https:\/\/www.resourcepro.com\/wp-json\/wp\/v2\/posts\/12469\/revisions"}],"predecessor-version":[{"id":13710,"href":"https:\/\/www.resourcepro.com\/wp-json\/wp\/v2\/posts\/12469\/revisions\/13710"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.resourcepro.com\/wp-json\/wp\/v2\/media\/12470"}],"wp:attachment":[{"href":"https:\/\/www.resourcepro.com\/wp-json\/wp\/v2\/media?parent=12469"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.resourcepro.com\/wp-json\/wp\/v2\/categories?post=12469"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.resourcepro.com\/wp-json\/wp\/v2\/tags?post=12469"},{"taxonomy":"news-category","embeddable":true,"href":"https:\/\/www.resourcepro.com\/wp-json\/wp\/v2\/news-category?post=12469"},{"taxonomy":"insurance-segment","embeddable":true,"href":"https:\/\/www.resourcepro.com\/wp-json\/wp\/v2\/insurance-segment?post=12469"},{"taxonomy":"services","embeddable":true,"href":"https:\/\/www.resourcepro.com\/wp-json\/wp\/v2\/services?post=12469"},{"taxonomy":"type-of-content","embeddable":true,"href":"https:\/\/www.resourcepro.com\/wp-json\/wp\/v2\/type-of-content?post=12469"},{"taxonomy":"resource-type","embeddable":true,"href":"https:\/\/www.resourcepro.com\/wp-json\/wp\/v2\/resource-type?post=12469"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}