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In today’s business climate, a solid employee retention strategy is more important than ever. Even as the Great Resignation has waned in some sectors, high employee turnover continues to plague organizations. It’s an issue that’s not going away anytime soon. In fact, advisory firm Forester predicts that employers will face more, not less, worker turnover long into the future. This is especially true of frontline workers—who already quit at a rate of 50 percent within the first three months. While some turnover is natural, excessive turnover can crush a business. Beyond the loss of valuable team members, the cost of replacing an employee can be staggering—from one-half to twice the employee’s salary. And the detrimental effects of high turnover extend beyond mere financial strain. Here are six ways that high turnover negatively impacts an organization.

Decreased Productivity

According to Gallup, employees who are considering leaving tend to become disengaged, and disengagement incurs a cost of between $450 billion and $550 billion each year in lost productivity. If workers do leave, the time it takes to train new employees—a minimum of three months by some estimates—further impairs productivity as managers are spending more time onboarding and training newcomers. Expedited training isn’t a viable solution. It can result in embarrassing, costly, or even dangerous mistakes that wind up taking even more time away from production.

Impaired Customer Relations

When employees are constantly new, lacking knowledge about products, services, and procedures, customers grow increasingly frustrated. Consulting firm Watermark found direct, negative correlations between companies’ employee retention rates and their Net Promoter Scores (a widely used measure of customer experience quality). High turnover led to low customer satisfaction. Especially in frontline industries, where courteous, skilled public-facing employees are vital to the customer experience, high employee turnover means bad online reviews and, eventually, lost customers.

Plummeting Morale

As employees watch their coworkers come and go, they become less likely to engage with new hires. Moreover, as coworkers leave, employees are more likely to consider the reasons why—ultimately leading to their own departures. Managers lose motivation, too, when it comes to implementing new initiatives or investing in employees’ growth. When morale is low among frontline employees, their customer service skills decline. In fact, a survey by Eagle Hill Consulting found that dissatisfied employees were more than 2.5 times more likely to say they do not provide excellent customer service. As mentioned above, indifferent customer service is contagious, leading to indifferent customers who will take their business elsewhere

Tarnished Reputation

High turnover makes businesses look bad. Those poor online reviews from disgruntled customers send a negative signal to both would-be buyers and potential employees. According to Forbes, negative online reviews deter 80% of viewers from contacting a business. And a Harvard Business Review study found that businesses with a poor reputation as employers had to offer at least 10 percent higher salaries to entice employees to join. A bad reputation can also discourage partners, investors, and lenders who view low employee retention as a sign of overall organizational instability.

Product Quality Issues

Whether the product is a clean, safe facility or a medical device, high turnover can negatively impact product quality. In the custodial industry, where turnover hovers around 200%–an entire workforce replaced twice in a year—turnover can turn into dirty, cluttered buildings. A poorly maintained building can deter potential tenants and visitors, as it’s often their first impression of a business. When it comes to manufacturing, poor employee retention can mean faulty products, leading to costly returns. A a research study by Informs found a direct link between turnover and product quality: “Despite the manufacturer’s extensive quality control efforts, including stringent testing, each percentage point increase in the weekly rate of workers quitting from an assembly line (its weekly worker turnover) is found to increase product failures by 0.74%–0.79%.”

Safety Concerns

High turnover decreases safety. According to OSHA, 40 percent of employees who are injured have been on the job less than one year. Not only is this statistic troubling when considering the human toll, but it’s also bad for a company’s bottom line. Businesses incur over $170 billion annually due to employee injuries or illnesses. Indirect expenses such as productivity loss, equipment damage, and legal fees can multiply total costs by a factor of ten.

Start with Recruiting the Right People for the Job

According to the Harvard Business Review, 80 percent of turnover is due to bad hires. Employee retention starts with recruiting and onboarding the right people. To do that, recruiters need to be crystal clear about their expectations and communicate them in an effective, accessible way. They also need to understand how much emphasis to put on hard versus soft skills—especially when it comes to frontline roles. In some cases, “trainable” is better than pre-trained. Finding the right people for the job also means widening the talent search to include innovative employment models and underutilized workforces. A 2020 study by Accenture and Harvard Business School coined the term “hidden workers”—an estimated 27 million people, including individuals with disabilities, who are eager to work, demonstrate numerous business benefits, and are statistically more likely to stay at a job.

Let Us Help You Reduce Employee Turnover

Turnover in frontline roles like retail, hospitality, manufacturing, and facilities maintenance is an ongoing challenge. Let us introduce you to a workforce that wants the jobs you sometimes find difficult to fill and retain. PRIDE Industries has decades of experience working with hundreds of businesses to provide turnkey, scalable staffing solutions. We make it easy to offer life-changing employment to individuals looking for long-term opportunities. Join us.

High employee turnover continues to plague companies—especially those that include frontline workers, and learning how to retain employees has become a business imperative. While compensation certainly factors into low employee retention, departing employees cite other causes. Below, we summarize them, but, first, let us tell you about an innovative solution: supported work groups of employees with disabilities.

What is a Supported Work Group?

For hundreds of companies, the supported work group model answers the question of how to retain employees—but what, exactly is it? A typical work group is comprised of three employees with disabilities who have the desire and ability to work. Each group is supported onsite by a trained, dedicated employment coach supplied by the work group provider. The group is placed with employers whose jobs match the employees’ interests and skills.

The work group provider serves as the employer of record, taking on the recruiting, hiring, training, payroll, supervision, and quality control work—eliminating management overhead for the partner business. Supported work groups can be tailored for specific roles, offering flexible, scalable solutions while the pre-employment preparation process and on-the-job support ensure a workforce that’s both skilled and safe. What’s more, supported work groups directly solve many of the issues that lead to high turnover.

Causes of Employee Turnover and Work Group Solutions

Lack of a Sense of Belonging

When considering how to retain employees, first consider this: Belonging is the most basic of all human needs and is as important at work as anywhere else. A study by BetterUp and Harvard Business Review found that employees who feel they don’t belong have a 50 percent higher turnover risk than those who feel they do.

Solution: Lack of belonging is a fixable problem—one that’s built into the supported work group model. Because each work group is comprised of three eager employees with disabilities and one coach, a sense of community is established from the start. In some cases, transportation to and from work is included in the program, and the shared commute further increases comradery. Work group employees report looking forward to working each day.

Lack of Engagement

When belonging goes missing, so does engagement. A study by Qualtrics found that employees who don’t experience a sense of belonging are three and a half times less likely to engage—leading to a vicious cycle. Unengaged employees put in less effort, refuse extra responsibilities, cease to grow, withdraw from coworkers, and, ultimately, leave.

Solution: The work group is a team, and each day team members engage directly with each other and with their coach. The sense of belonging is inherent to the supported work group and fosters engagement. As a result, the disengage-withdraw-depart cycle is nipped in the bud.

Poor Communication

According to marketing research firm GITNUX’s 2024 Marketdata Report, inconsistent communication in the workplace increases employee turnover by 50 percent. It makes sense. Without consistent, effective communication, confusion reigns.

Solution: Key to the work group model are the skilled employment coaches who are trained to facilitate ongoing communication—not only among work group employees, but also with management. Employment coaches also help to prioritize and reprioritize employee’s tasks, tailoring them to an organization’s shifting needs.

Lack of Goals and Purpose

Without goals, employees feel adrift. Without purpose, they feel like what they do doesn’t matter. Employees who are distanced from the big picture—including a company’s purpose, mission, and goals— lose enthusiasm and commitment. In fact, research by Great Place to Work found a lack of purpose to be one of three predictors for employee turnover, “regardless of generation or job type.” Similarly, employees without goals don’t know where to direct their efforts and are more likely to leave.

Solution: Purpose and goals are also critical components of supported work groups. From the employees to the coaches to the companies where work groups shine, everyone involved understands their goals and responsibilities. Goal setting starts pre-hiring, when employees with disabilities are matched with job opportunities aligned with their employment goals. Employment coaches work to help each work group member achieve their objectives on the job. Coaches also work with managers and co-workers to keep everyone aligned. Frequent check-ins mean that the employee receives regular feedback each step of the way.

Lack of Recognition

A survey by Indeed found that, for 30 percent of people who left a job within the first six months, recognition for their contributions could have made the difference—encouraging them to stay. Similarly, Gallup found that employee recognition results in employees who are 56 percent less likely to begin looking for a new job.

Solution: Employee recognition is integral to the work group model. Whether it’s quarterly attendance awards, luncheons for a job well done, or a shout-out in the company newsletter, work group leaders regularly celebrate the successes of the employees they train and work with.

Poor Training for Employees

Research shows that 40 percent of employees who don’t receive proper job training will leave their positions within the first year. According to LinkedIn’s 2018 Workforce Learning Report, 94 percent of employees said they’d stay at a company longer if it invested in helping them learn—another important metric to consider when discerning how to retain employees.

Solution: As employment coaches are constantly present, training is never a one-and-done proposition with supported work groups. Coaches are prepared to help employees learn new skills as needed, and coaches have the know-how and flexibility to tailor training to each individual’s learning style.

Unclear Performance Expectations/Lack of Manager Feedback

Jim Harter, Chief Scientist of Workplace Management and Well Being at Gallup, said, “the most fundamental engagement element is knowing what’s expected of you.” Gallup’s meta-analysis discovered robust correlations between clarity of expectations and organizational results, including employee retention.

Solution: Work group leaders provide documented performance expectations for the employees they work with, from pre-employment to on-the-job in real time, as well as feedback about performance. Moreover, the presence of employment coaches allows for expectations to be easily tailored and scalable in accord with a business’s needs.

How to Retain Employees: A Business Imperative

In today’s high-turnover climate, a good employee retention strategy will include innovation. This means that employers will need to consider previously underutilized talent pools and workforce structures. To be competitive, savvy organizations must invest in creating and fostering an inclusive work environment where employees feel seen, valued, and empowered.

Let Us Help You Reduce Employee Turnover

Comstock’s Magazine features PRIDE Industries’ partnerships with organizations throughout the Sacramento region to provide employment for people with disabilities and strengthen communities.

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Misconceptions abound when it comes to employment for people with disabilities despite growing awareness and efforts to promote inclusivity in the workplace. These myths often stem from a lack of understanding and can hinder businesses from tapping into a diverse and talented workforce. In this article, we aim to debunk the most common myths surrounding the employment of individuals with disabilities.

Myth 1: People with disabilities aren’t qualified.

Facts: There are many qualified candidates with disabilities that have the necessary education and experience for a variety of jobs. In fact, employees with disabilities often bring innovative, efficient approaches to tasks, offering fresh ideas and methods.

An individual’s disability may have nothing to do with the job they’ve applied for. Moreover, people with disabilities, like any other group, are not a homogenous population. They are simply individuals whose abilities often face societally created barriers.

Quoted in a recent Forbes article, former Connecticut state senator, past Chair of the American Association of People with Disabilities, and disability attorney, Ted Kennedy Jr. said, “For too long, people with disabilities—individuals who are perfectly qualified and overwhelmingly willing to work—face enormous barriers to being offered a job.” Kennedy cited a recent study by Accenture which provides “compelling evidence” of the many benefits employees with disabilities bring to the workforce, including an acceleration of overall business performance.

Myth 2: Reasonable accommodation is costly.

Facts: The Americans with Disabilities Act (ADA) stipulates that employers must provide “reasonable accommodation” for people with disabilities. Many employers wrongly assume such accommodations are prohibitively expensive. The truth is that accommodation is surprisingly easy in most cases. In a survey of 3,528 employers by the Job Accommodation Network (JAN), 49.4% reported that the accommodations for employees with disabilities “cost absolutely nothing.” For employers that incurred a one-time cost to accommodate employees with disabilities, the median expenditure was just $300.

Many accommodations for people with disabilities—ramps, close captioning, quiet spaces—also benefit employees without disabilities as well as customers. And, when employees see employers cultivate a sense of belonging, they feel better about coming to work—even when they’re not the ones being accommodated.

The late disability rights advocate Judy Heumann put it this way, “Disability only becomes a tragedy when society fails to provide the things we need to lead our lives—job opportunities or barrier-free buildings, for example.”

At the same time, companies who hire people with disabilities are eligible for tax credits and other government initiatives that can totally offset, or even surpass, the cost of accommodation.

The Work Opportunity Tax Credit, for example, is a federal program that provides employers with tax credits for hiring individuals from certain target groups that have faced barriers to employment, including people with disabilities. Tax credits are also available to improve architectural accessibility, and several states offer their own incentives related to hiring people with disabilities and creating accessible workplaces.

Myth 3: Managers can’t expect the same level of performance from employees with disabilities.

Facts: Job performance of people with disabilities has proven equal to, if not better than, that of workers without disabilities—a fact underscored by studies dating back decades.

In 1990, DuPont surveyed 811 employees with disabilities, finding that 90 percent rated average or better in job performance. Similar studies in 1973 and 1981 found employees with disabilities rated higher than their peers without disabilities. A 2002 study by Virginia Commonwealth University’s Rehabilitation Research and Training Center found that employees with disabilities “are as capable and productive” as employees without disabilities, including in the areas of timeliness, punctuality, task consistency, and work speed.

Not only are employees with disabilities highly productive on an individual level, but according to the Bureau of Labor Statistics, businesses that include employees with disabilities see a 72 percent increase in employee productivity.

Myth 4: Companies that hire people with disabilities are less competitive.

Facts: This myth is not only false, the opposite is the case—companies that actively hire people with disabilities perform better than peers. According to Accenture’s groundbreaking research, companies that actively employ and support people with disabilities achieve 1.6 times more revenue, 2.6 times the net income, and twice the economic profit compared businesses that do not.

Similarly, a National Institutes of Health Review of 6176 studies found that companies that employ people with disabilities see “improvements in profitability” stemming from profits and cost-effectiveness; low turnover and high retention; high levels of reliability, punctuality, and employee loyalty; and an enhanced company image.

Myth 5: People with disabilities don’t apply for jobs at my company.

Facts: Some employers assume that people with disabilities aren’t interested in working at their companies because few apply. In fact, many online job applications aren’t accessible to people with disabilities. According to a survey by the Partnership on Employment & Accessible Technology (PEAT), 46 percent of respondents rated their most recent attempt to apply for a job online as “difficult to impossible.” Color-reliant applications, poor contrast, mobile device incompatibility, screen reader incompatibility, and rapid auto-timeout presented the biggest challenges.

Ableist language in job ads can discourage people with disabilities from even attempting to apply. Boilerplate verbiage like “must be able to lift 50 pounds”—which may have nothing to do with actual job duties—may deter a highly qualified candidate with physical challenges. While some jobs do require physicality, words matter when it comes to specific physical requirements. For example, will an employee truly need to “walk” or “crouch”? Or will they simply need to be able to move from point A to point B?

The ADA requires employers to provide equal opportunity to people with disabilities, beginning with the application process. The World Wide Web Consortium has published Web Content Accessibility Guidelines (WCAG) to help businesses evaluate their website’s accessibility, including online job application functions. When it comes to advertising jobs, The Employer Assistance and Resource Network on Disability Inclusion (EARN) recommends creating job announcements that emphasize the specific outcomes a job requires, rather than how the duties should be accomplished.

Employment for People with Disabilities: Like Hiring Any Employee

Employment for people with disabilities is like employment for anybody else. Each individual is equipped with strengths, weaknesses, goals, and needs. Much the same as it is with any employee, leveraging the capabilities of an employee with a disability is about identifying strengths and abilities and providing the tools and support they need to be successful.

Let Us Help Solve Your Labor Shortages

The US Chamber of Commerce recommends that businesses turn to experienced partners to tap the many benefits—including tax incentives—of employing people with disabilities. PRIDE Industries has helped hundreds of companies do just that, helping recruit, hire, train, and support this growing and reliable talent pool—free of charge to employers.

Become an Employment Partner

Companies of all kinds are in the midst of a persistent labor shortage, and the need for a talent pipeline is acute for many employers. The U.S. Chamber puts it this way: “We hear every day from our member companies—of every size and industry, across nearly every state—they’re facing unprecedented challenges trying to find enough workers to fill open jobs.” To solve this problem, employers are seeking innovative staffing solutions, but there’s one that may not be on employers’ radar: Work groups comprised of employees with disabilities.

What Are Work Groups?

Hundreds of companies have partnered PRIDE Industries for work groups for a reliable talent pipeline. In a nutshell, work groups are comprised of three employees with disabilities who are placed at a business, in accordance with the workplace’s staffing needs. Each group is supported onsite by a trained, dedicated employment coach.

PRIDE Industries serves as the employer of record, taking on the recruiting, hiring, training, payroll, supervision, and quality control work—eliminating management overhead for the partner business. What’s more, the program can be tailored for specific roles, offering flexible, scalable solutions while the pre-employment preparation process and on-the-job support ensure a workforce that’s both skilled and safe.

“They are the most can-do group I've ever been around, and they elevate the attitudes of everyone around them. They're happy to be here, and if I could have a hundred of them, I would.”

—Doug Jacot, Acushnet Director of Manufacturing

Business Benefits of Work Groups as a Talent Pipeline

As the nation’s leading employer of people with disabilities, PRIDE Industries has been successfully utilizing the work group model as a talent pipeline for nearly two decades. It’s a staffing solution that’s proven effective across industries, offering numerous business benefits.

Pre-screened, qualified applicants.
Tailored and scalable to a variety of shifts, schedules, and seasons.
Supervision by a trained employment coach.
Guaranteed consistent staffing levels.
Payroll, Workers’ Comp, and liability insurance are covered.
Option to convert work group employees to direct hires if desired, and the hired employees are still eligible for job coaching.

Benefits of Employing People with Disabilities

In addition to the business benefits of the work group employment model, businesses that actively include people with disabilities enjoy additional proven outcomes.

The retention rate for employees with disabilities is higher and absenteeism is lower—a huge plus in today’s high-turnover climate.
The presence of employees with disabilities boosts overall company morale. When employees see their workplace embracing inclusivity, the sense of belonging for all employees is enhanced.
Businesses that employ people with disabilities have growing appeal to today’s customer. A 2018 study by analyst firm Accenture found that 62 percent of consumers globally prefer to buy goods and services from companies that “stand for something bigger.”
Companies that employ people with disabilities enjoy a better bottom line, according to Accenture—with 1.6 times more revenue, 2.6 times more net income, and 2 times more economic profit than peer organizations.

What Types of Businesses Can Benefit from Work Groups?

The short answer is “most.”

From manufacturing to facilities management; food services to retail; landscaping to packaging; work groups do it all and do it well.

Packaging

According to Food Logistics Magazine, “quiet quitting”—employees unwilling to go above and beyond the scope of their regular responsibilities—has plagued the packaging industry.

At Knee Deep Brewing, where a PRIDE Industries work group helps package the brewery’s artisan beers for shipment, the opposite rings true.

“I’ve been extremely pleased with our PRIDE Industries team members,” said Jerry Moore, Owner and CEO of Knee Deep. The company was so impressed with the work ethic and positivity of its PRIDE Industries work groups that, for two years in a row, it created a season beer dedicated to them.

“The partnership with Knee Deep has been a perfect fit for our employees,” said PRIDE Industries Workforce Inclusion Manager Melissa Sweet. “They are always excited to get to work every day, as shown by a stellar attendance record!”

Hospitality

Some 80 percent of hotels are experiencing staffing shortages, according to the American Hotel and Lodging Association (AHLA)—all the more troubling with room demand reach record highs.

Meanwhile, at Thunder Valley Casino Resort, “elite” laundry work groups have managed 10,000 pounds of laundry per day since 2019. The teams’ work has proven so impressive that Laundry Manager Khawar Qureshi has called on other teams to “step up and learn” from them. “They are very productive,” said Qureshi. “And they do quality work.”

Director of Hotel Operations, Brant Kelly, concurs. “It’s a great workforce,” he said, adding that working with them has been “nothing but a pleasure.”

Manufacturing

Turnover on manufacturing floors is typically around 40 percent. At San Diego golf manufacturer Acushnet, parent of Titleist and FootJoy brands, that’s not the case. Employees with disabilities build packages for thousands of products, day in and day out.

“They are the most can-do group I’ve ever been around,” said Director of Manufacturing Doug Jacot. “And they elevate the attitudes of everyone around them. They’re happy to be here, and if I could have a hundred of them, I would.”

Custodial

Whether it’s dealing with a messy corporate lobby, overflowing trash in a break room, or dirty hallway floors, it’s no secret that the custodial industry is struggling with staffing shortages and retention. Not so at the U.S. Forest Service’s Regional Headquarters on Mare Island, where a work group keeps the organization’s facilities clean and tidy.

“The Forest Service throws parties for our employees out there,” said Workforce Inclusion Employment Coach Assistant Manager Sean Sharpe. “Because they keep the place immaculate.”

Immaculate, indeed. This past December, a customer inspection of the facility rated the team’s work at a nearly perfect 99 percent. “The employees really know what they’re doing,” said Sharpe. “They could train me on the job.”

An Available Talent Pipeline

Ongoing labor shortages—there are more than 8 million unfilled front-line jobs—has experts like business consulting firm Gartner and employers like Google, IBM, and Salesforce urging companies to expand their talent search to include people with disabilities. “For years, organizations have talked about the strategic value of expanding and diversifying their talent pipelines,” said Gartner analyst Emily Rose McRae. “Organizations can no longer meet their talent needs solely through traditional sourcing methods and candidate pools.”

Over 10 percent of working-age Americans have a disability. Many who are currently unemployed are both skilled and eager to work. Through work group employment, they have the opportunity to let their abilities shine, giving smart employers that diverse talent pipeline that they need.

Let Us Help Solve Your Labor Shortages

Become an Employment Partner

Director of Product Engagement Andrew Williams shares how, amid a persistent manufacturing labor shortage, companies are finding reliable alternative talent pools like people with disabilities.

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