EOWA Business Case for Pay Equity Retain a higher percentage of your employees

Employees who do not feel valued through the provision of equitable pay will not remain with that organisation. Perceptions of both a ‘glass ceiling’ and a ‘sticky floor’, and lack of sufficient career development opportunities, can also lead to a higher turnover rate for women. Staff turnover is expensive.

Costs associated with recruitment and turnover include:

• Advertising costs

• Lost time spent on interviews, clerical and administrative tasks

• Costs associated with training the new employee

• Termination pay

• Loss of specialist knowledge

• Loss of customers and client relationships

To calculate the cost of staff turnover in your own organisation, see EOWA’s Costing Turnover Calculator.

Retention of both male and female employees will promote new sources of ideas, creativity and problem solving. Studies have shown that heterogenous workplaces are far more innovative, flexible and provide a higher return on investment for shareholders than homogeneous workplaces.

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