It wasn't long ago that employers held all the leverage in the labor market. They could set strict terms of employment, offer lower wages, and afford to be highly selective. In recent years, the market has shifted to give employees far more negotiating power than before. The shift in leverage can be attributed in part to the pandemic and subsequent rise of remote work, greater work-life balance expectations, and increased demand for skilled workers. These ongoing transformations in the labor market have forced employers to rethink their strategies and adapt to the changing dynamics of attracting and retaining top talent.

The cost of change: Retaining top talent

Retaining outstanding employees in today's labor landscape can be a costly endeavor, but the cost of losing them can be even more substantial. The expenses associated with turnover include recruitment, onboarding, training, and decreased productivity during the transition period.

In fact, recent data from Bluecrew shows that it can cost employers more than $6,700 to replace a single worker making $15 per hour. There are other massive costs facing organizations as many spend: on average, $20,000 is spent on taxes, insurance, benefits, recruiting, and ongoing management annually, to be precise. What is harder to quantify is the emotional toll the loss of colleagues has on their peers, team cohesion, and the institutional knowledge of an organization.