It’s a great time to be a job seeker in the U.S. The job market is the hottest it has been in the past 50 years as the U.S. economy added jobs for 100 months in a row.
While it is a great time for employees to seek out new opportunities, this also means that turnover and costs associated with recruitment will increase. According to the Bureau of Labor Statistics, U.S. workers are seeking out new opportunities and quitting their jobs now more than ever before. In October 2018, over 2% of the total working population (over 3.5 million people!) voluntarily quit or resigned from their positions.
This turnover can come with a hefty price tag for employers. It can cost a company up to 213% of an employees salary to replace them. There’s also loss of productivity to consider and impact on the rest of your team, who may also get the idea to seek out new opportunity after an employee resigns.
Top performers that aren’t completely satisfied in their current roles are at major risk. Small businesses can be especially vulnerable after the loss of even one top-performer. Companies are especially at risk of losing top performers who have built up strong portfolios and professional reputations, as it’s easier for these high-achievers to find new work.
So what do you do if a top performer does resign? For starters, don’t panic. Your company will survive! You should also resist the urge to counter offer as employees that accept a counter offer are still 80% likely to leave within six months. Read on for more tips from Fundera on how to conduct a successful exit interview and find an awesome replacement if your top employee resigns.