Some Facts about Turnover

For many industries, one of the biggest challenges is employee turnover. In manufacturing, annual turnover rates average 33%, while the service industry averages 40% (1). This rate is significantly higher for the hospitality industry, where annual turnover for hourly employees ranges from 60%-300% (2), as well as for the restaurant industry, where turnover averages close to 100% per year (3).

The costs of turnover can be quite detrimental to a company's profitability. Conservative estimates cite the cost of replacing one employee as the equivalent of one-third of that employee's salary. These costs include:

• Pre-turnover costs (low productivity, absenteeism)
• Separation costs (administrative tasks, unemployment claims)
• Vacancy costs (increased overtime, temporary employment)
• Replacement costs (advertisements, interviews, administrative costs)
• New hire training costs (company policies, job-specific training)
• Productivity differential (lower initial productivity)

Will language training solve this problem? No - but it certainly can help. Studies show that low pay is only one reason people leave; communication problems and lack of advancement opportunities are among the leading causes of hourly employee turnover. Providing targeted, job-specific English classes to your non-native English speaking employees will improve communication and job performance, thereby creating more opportunities for your employees within your company. Why look outside for supervisors and future managers when you can promote your current employees?

Offering workforce language training makes good financial sense and good business sense. And it's a good thing to do, too.

References

1 - Bureau of Labor Statistics
2 - American Hotel & Motel Association
3 - National Restaurant Association