Corporate Case for Twin Protocol
According to the US Bureau of Labor Statistics’ 2022 and 2023 projections, the annual overall turnover rate in the U.S. is expected to remain high, with an estimated rate of 25-30% The cost of replacing an individual employee is also expected to remain significant, ranging from 50% to 200% of the employee's annual salary, depending on the industry and position.
For example, in a 100-person organization with an average salary of $50,000, the estimated turnover and replacement costs for 2022 and 2023 could range from $625,000 to $2.5 million per year. This represents a significant expense for companies of all sizes, and when extrapolated to the U.S. economy as a whole, the annual cost of employee turnover is projected to exceed $1 trillion by the end of this year.
Given these high costs, it is critical for organizations to find ways to retain their top talent and minimize turnover. Innovative solutions like Twin that use AI and blockchain technology to capture and retain institutional knowledge can be a valuable tool in this effort. By providing a platform for employees to share their skills and knowledge, Twin can help companies reduce the negative impacts of attrition and minimize the costs associated with employee turnover.
With attrition, companies experience a costly productivity decline that comes from the lengthy hiring, training, and learning curve typically required for new hires; frequent occurrences of “reinventing the wheel”; an increased risk of repeating past mistakes that could have been avoided; and the burden placed on other employees to help “pick up the slack”. A digital Twin will help significantly in training new employees and will make tapping into past institutional knowledge as easy as asking the employee sitting next to them, revolutionizing how companies manage attrition, knowledge retention, and training today.