The Center for Nonprofit Management’s (CNM) Southern and Central Compensation and Benefits Report found that a third (36%) of respondents have a difficult time retaining their top performers and 1 in 2 respondents attribute this to their inability to offer a competitive salary and benefits packages. Besides losing talent, turnover has many costs.
A study by the Center for American Progress found that, turnover costs are often estimated to be 100% to 300% of the base salary of replaced employee, depending on wage and role of an employee. On average, the costs to replace an employee are:
- 20% of annual salary for mid-range positions (earning $30,000 to $50,000 a year). For example, the cost to replace a $40k manager would be $8,000.
- Up to 213% of annual salary for highly educated executive positions. For example, the cost to replace a $100k CEO is $213,000.
- Cost of off-boarding (severance, benefits continuation, and admin for record‐keeping, payroll)2
- Cost of hiring (advertising, interviewing, hiring)3
- Cost of onboarding a new person (training, management time)3
- Lost productivity (a new person may take 1-2 years to reach the productivity of an existing person)3
Is your organization keeping pace with the changing market? Taking time to consider compensation and benefits trends in the nonprofit sector is essential to organizational success. We all know that employee turnover has a cost. But what is the price tag, exactly?
The Southern and Central California Nonprofit Compensation and Benefits Report (C+B) is a tool designed to help organizations make informed decisions when it comes to hiring practices and to ensure appropriate recruitment and retention. We need your participation in the 2016 survey to build a strong data set so we can identify the trends of 2016, and provide you with the Comparative Market Analysis that will help shape your hiring and retention practices for the coming years. (Please see an example here).
Participation is essential, because you can’t afford not to.