Boost Retention & Save: Try the Employee Turnover Savings Calculator

 Innovative EWA employee benefits help reduce employee turnover and boost retention – see your potential company savings with our employee turnover savings calculator

Boost Retention & Save: Try the Employee Turnover Savings Calculator

Need to cut costs AND keep your staff happy, healthy and productive?

Employee turnover can be a big drain on company finances. However, new research shows that innovative solutions like Earned Wage Access (EWA) from Jem HR not only reduce absenteeism and financial stress to boost productivity while promoting financial inclusion in South Africa but can also reduce employee turnover by 35%.

Here’s how to calculate how much your company can save on turnover costs by boosting retention and engagement with EWA.

The True Cost of Employee Turnover

Replacing employees is more expensive than we think. It’s not just the direct costs of recruiting, hiring, and training new employees; there are also indirect costs like lost productivity, decreased morale, and the potential impact on your brand reputation. 

This is especially true in high-turnover industries such as manufacturing, construction, retail, trades, services and security – averaging at around 37% employee turnover per year.

On average, the cost of replacing an employee by skill level is:

• entry-level or low-skill: 50% of that employee’s annual salary.
• mid-level skilled: 100% of their annual salary to replace.
• Highly skilled specialists: 250%–300% of their annual salary to replace.

So even a fairly low-skilled employee earning R10,000/month can cost up to R60,000 to replace across a one year period (including hidden costs etc).

How to Calculate Your Employee Turnover Rate

To work out your company’s average monthly employee turnover rate:

1. Take the total number of employees who resign from your organisation within a year and divide it by the average number of employees during that same period.
2. Then, multiply the resulting figure by 100 to convert it into a percentage representing your employee turnover rate.

How Much Can EWA from Jem Help You Save on Turnover?

Every company is different, but most companies that implement EWA reported seeing around a 35% reduction in employee turnover. What that means is, 35% fewer employees leaving saves you 35% on your annual replacement costs.

Here’s how to calculate yours…

Your Employee Turnover Savings Calculator

If you’re not sure what employee turnover is costing your company, you can calculate your potential savings by:

• Using your turnover rate against the total staff complement to get to the annual turnover volume (number)
• Multiply that number by 50% of the employee’s annual salary
• Subtract 65% from that value, and that’s how much you can save.

For example

If you have 1,000 employees, low-skill and earning around R10,000 per month, and an annual turnover rate of 18%, that means your turnover is 180 staff per year, which costs well over R10.8 million per year.

With EWA from Jem, you could reduce turnover by 35% to just 117, which is only R7 million in replacement costs – that’s an employee turnover cost saving of R3.7 million per year.

Employee Turnover Savings Calculator

Number of Employees: Annual Turnover Rate (%): Average Monthly Salary (Rands): Calculate Savings

How to Get EWA and Start Saving on Turnover Costs Today

With Jem, it’s extremely easy to get going with earned wage access; you simply:

1. Book an EWA demo here.
2. We’ll show you how it works.
3. And get you set up super fast.

The best part is that EWA doesn’t cost you as the employer anything, meaning you can add it as a zero-cost employee benefit that reduces financial stress and promotes financial inclusion as well as providing valuable financial education for your employees.

For more information, see how to implement EWA or browse our EWA FAQs page.