August 28th, 2014 by Corrie Johnson

Motivate Millennial Employees  |  Motivate Sales Teams

Hoopla Helps Reduce Employee Turnover

Hoopla Helps Reduce Employee Turnover

Does your company experience high employee turnover? If so, you’re losing money. Hoopla helps reduce employee turnover with fun sales contests, games and challenges that foster friendly competition in the workplace.

According to this article on, the average person stays at a job for about four years. However, 91% of Millennials—the fastest growing segment in today’s sales force—expect to stay in a job for only about half that time. Over the course of a 50-year career, most people will have 15 – 20 jobs, according to This means that many employees are unhappy or become dissatisfied enough to leave shortly after settling into a new position.

What costs are associated with employee turnover?

Many companies fail to understand the true cost savings associated with reducing employee turnover. The Society for Human Resource Management (SHRM) estimates that it costs $3,500 to replace one employee who is paid $8 an hour. Their estimate was the lowest of 17 companies who estimated the cost of employee turnover, according to Many companies simply do not realize how much each lost employee costs them in recruiting, training and other expenditures.

Companies that endeavor to create a positive work environment and address employee concerns are likely to experience lower turnover rates, which results in significant savings. Keeping employees happy not only saves companies money that would otherwise go to recruiting and training new staff, it also means that companies can retain the most talented employees, which, in turn, attracts more stellar employees.

Salaried employees may cost even more to replace. Some estimates say that it costs a company 30 to 50 percent of entry-level employees’ salaries to replace them, 150 percent of mid-level employees’ salaries and as much as 400 percent of high-level employees’ salaries. To put this in perspective, a company with 1,000 employees and a turnover rate of 10 percent will spend around $7.5 million for employee turnover each year, according to

Although these figures may sound high, they make sense once companies take a close look at the figures. When an employee quits, someone must be hired to temporarily come in and fill that position, which costs money. Also, it takes new hires a while to become efficient workers, so there is lost productivity up until the time that a new hire becomes equally good at their job as the former employee.

Sales revenue may be lost as well. Customers may also feel more comfortable with the people they have dealt with in the past and sometimes choose to follow employees to their new companies.

Another expense is the cost of exit interviews. Someone has to be paid to perform exit interviews. Plus, there are administrative costs associated with stopping payroll, notifying COBRA and filling out other forms when employees leave.

Companies lose the money they’ve invested in employees. This includes internal and external training, plus the cost of possible licenses and certifications. New hires must be trained as well, so all of those costs are directly related to employee turnover. Not only must companies pay people to conduct training, they also have to foot the bill for orientation and training materials.

Unemployment insurance premiums may go up. In the case of unemployment hearings, someone has to be paid to prepare for them, or the company must pay a third party to handle them.

To fill vacant positions, companies must pay for recruitment. These expenses may include advertising and hiring a recruiter to perform interviews, run background checks, and communicate with candidates. An internal recruiter may spend 30 to 100 hours or more per position. An additional 20 hours from an assistant to the recruiter could be necessary, too, which drives up costs.

Some employee turnover is unavoidable. However, companies can counter most of it by performing an assessment of which employees are leaving and why. Exit interviews can be tremendously helpful in ascertaining why people quit. Once the reasons are known, steps can be taken to fix the problems that drive employees away.

According to, 53 percent of employees look for a new job because they want better benefits. Thirty-five percent said their current company was not providing career development. Companies can address these concerns with simple fixes, such as offering better benefits packages and additional training opportunities. More training can also increase the productivity of current employees. Hoopla can help companies to ensure that their employees feel excited about their jobs and feel like they are constantly learning new things, which prevents loss of talented employees.

Overall, keeping employees motivated and happy translates to increased productivity and less turnover. A company enjoys a desirable environment and favorable reputation under these circumstances, which attracts top talent. This cycle repeats as happier and better employees continually improve the company’s reputation as a top employer, and more people want to work there.

How does Hoopla reduce employee turnover?

At Hoopla, we fully understand the importance of employee retention. Hoopla helps companies keep their employees happy by making the workplace more fun, facilitating teamwork and increasing sales productivity through our Sales Motivation Platform. For a real-life example, download our case study to learn how 6S Marketing has been using our software to create an engaged, winning team culture.

For more information on how Hoopla’s Sales Motivation Platform can help your organization reduce employee turnover, watch our demo video or contact

Tags: Motivate Millennial Employees, Motivate Sales Teams. Bookmark the permalink.

Corrie Johnson

About Corrie Johnson

Corrie Johnson is the Chief Financial Officer at Hoopla. She has 20 years experience in finance, operations, human resources and engineering at venture backed private and public companies.  She is motivated by fast moving teams, Diet Coke, Golden Retrievers, RAGBRAI, John Denver and--sadly--a beautiful spreadsheet.

  • jbenes3809

    This was a very informative…thank you

  • Katiemisslady

    It just goes to show, the more time and money employers put into their employees. The greater employees they create.

  • Teea Rogers

    Employee care is the most important thing I look at in companies I work for and it makes me want to stay!

  • Teea Rogers

    Employee care is the most important thing I look at in companies I work for and it makes me want to stay!

  • David Coons

    Extremely good know considering recent churn at my company.

  • Shane Merica Galaviz

    Hope this helps the big wigs look at it differently.

  • NextivaVoIP

    Creating a fun environment is a great way to keep employees and also sales. Makes sense on many levels to spend your time and money improving what you have rather than staring over.

  • Heidi Willbanks

    From an employee perspective, turnover has a negative impact on morale, too. So, by reducing employee turnover, you’re keeping your whole work force happier.

  • Alex_Luther

    Great Article

  • Jason Hanson

    I love Hoopla and these very insightful articles!

  • dianafonseca93

    it is important to like the environment you work in. hopefully this can make certain companies look at their turnover differently

  • meresia gutierrez

    Who would have thought it cost so much to replace an employee!

  • Mike Pascal Massimi

    Employee engagement and more importantly employee autonomy is key to retain your talents!

  • D. Sierra

    Great Article! Creating a interactive and fun environment is a great way to reduce employee turnover and boosting sales.

  • PoeDiggity

    Agreed, even with a company with such an amazing culture as our company has, Hoopla has been able to improve upon it by isolating individual employees’ achievements and providing a fun and custom (to the employee) way of commending their performance… as the salesforce admin I get requests regularly to update their user songs and pictures for them so when they strike a big deal they get the response from the software that suits them best… they are definitely engaged with the system, and having worked on various sales floors in the city, I can say the fact that we use the software is something new hires perceive as very fun, new and exciting.

  • Megan Locke

    Shocked about how much it costs to replace employees. Happy that Hoopla is around to help with employee turnover!

  • Jillian Ritivoy

    Agreed! Hoopla provides an exciting way to keep up and stay involved with the company and your coworkers. Can’t believe the costs to replace employees! I can see why you would look around for jobs with the best benefits, however, I know that some will justify the benefits for a better work environment.

  • Jillian Ritivoy

    Hoopla is a major contributor to our employee success and motivation! If you can’t work in an environment that motivates and drives you, there’s not much of a point!

  • Dan

    Not cheap to replace employees!

  • pminasian

    retraining is already the hardest part

  • Greg

    Good to know when asking for a raise.

  • Jillian Ritivoy

    “Some estimates say that it costs a company 30 to 50 percent of entry-level employees’ salaries to replace them, 150 percent of mid-level employees’ salaries and as much as 400 percent of high-level employees’ salaries. To put this in perspective, a company with 1,000 employees and a turnover rate of 10 percent will spend around $7.5 million for employee turnover each year, according to” This is CRAZY! 7.5 million in employee turnover each year, imagine if we spent more money training and qualifying employees instead.

  • D. Sierra

    Wow, this is some really good info.

  • Scott Leese

    Be interesting to discuss acceptable rep churn numbers in the enterprise vs. local space.

  • pop488

    100% agree with this article. Turn over is way more than just filling a position with another body. A lot of resources are dedicated when trying to get a new hire up to speed.

  • Doug

    100% agree also, keeping trained talent motivated is better than training new.

  • hpauto1

    Wow never realized this, good to know moving forward.

  • Ally Hale

    interesting new perspective

  • Christopher Owens

    Nice twist on things… Never looked at it this way.

  • ShadowSuperior81

    This is something that every company should already know. Keep the talent unless it can’t be helped.

  • T-WILL

    This is for sure. Sine we’ve implementer hoopla. More people can’t wait to make big sales. It just keeps you very motivated.

  • jorendain

    rather pay an employee more than have to rehire and train someone else.. it will cost more.

  • Bumurutu

    High turnover is a sign of a company that is going nowhere

  • mikenextiva

    Always giving me new ways to view things. Thank you Hoopla!

  • Michael Williams

    it cost a lot to hire and train a new employee. keeping turnover rate down is essential to a companies success

  • jarhunt

    its cost a lot to hire and train someone. having a lower turn over rate is better for the company.

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