We are seeing a lot of layoffs these days. The top external worry of CEOs is a recession/ downturn and that is influencing the decision to lay off team members.

Inflation is keeping us up at night. Interest rates rising, little to no economic growth, difficulty retaining and acquiring customers, and profitability are also on the list.

Attracting and retaining talent tops the list of CEOs’ internal concerns globally and in the U.S.

The average costs to replace an employee are:

$1,500 for hourly employees
100% to 150% of base salary for an employee in a technical position
Up to 213% of a C-suite employee’s salary

The top 5 reasons for turnover are:

Compensation - Only 14% of survey respondents said their current budget for compensation was adequate. The typical organization would need an 8% - 10% increase in the employee compensation budget to address turnover. Other solutions: Provide a total rewards statement and increase transparency.
Career development and advancement - Communicate common career paths and ensure that your team learns about internal promotions. Don’t motivate them to leave by being silent. Job architecture projects support this work and make it easier to communicate in a way that is aligned to employee interests.
Workplace flexibility
Unsustainable work expectations
Uncaring and uninspiring leaders

If you need to improve your profitability, we should talk.

Compensation is a foundational element to any business. If you don’t get that right, then your struggle will continue.

Focus on what you can control.

Sources: Built In, SHRM, The Conference Board

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