Takeaway: Corporations already judged to be outstanding employers can further reduce labor turnover by adopting social responsibility policies and practices. Up to half of the estimated impact of 3-3.5 percent on turnover can be attributed to adoption of labor-specific policies.In a study of 84 companies included in Fortune magazine’s ‘‘100 Best Employers’’ in 2006, the authors found that a company already judged to be a desirable employer, can reduce its turnover rate by 3 percent to 3.5 percent per year by adopting policies that lead to it being rated as socially responsible. The study also found that adoption of employee-friendly policies such as flex-time, profit sharing and involving employees in decision-making can reduce the financial impact of turnover by an estimated $3,700 per year in higher average hiring costs per employee.
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