Similarly companies with high levels of engagement show turnover rates at 40 percent lower than companies with low levels of engagement. However, companies that both engage and enable employees demonstrate a total reduction in voluntary turnover of 54 percent... For an organization with 20,000 employees and an annual voluntary turnover rate of eight percent, the cost of turnover is approximately $56 million (assuming an average salary of $35,000). Reducing the voluntary turnover rate by 40 percent would yield annual savings of $22.4 million. But reductions in turnover through high levels of engagement and enablement would yield savings of over $30 million annually, a difference of more than $7.5 million.
The Hay Group research also shows that highly engaged employees are likely to far more productive. As a result, the firm achieves substantial additional economic benefits. What can firms do with these economic gains from the combination of high engagement, low turnover, and high productivity? Certainly, they can pile up healthy profits. However, in the case of a firm such as Market Basket, it appears that they were able to share that economic value with customers and employees as well. Employees received solid compensation and benefits, while customers enjoyed low prices. Of course, all of these gains are at risk if the Board cannot move to resolve the leadership crisis at the firm. As of now, the workers are standing strong in support of their former CEO. The Board continues to examine a potential sale, either to that former CEO or to another party.