Actual Cost of Employee Turnover & Ways to Improve Retention

2772 WordsJun 29, 201612 Pages
Actual Cost of Employee Turnover & Ways to Improve Retention Steve Burton Morrison University ACTUAL COST OF EMPLOYEE TURNOVER & WAYS TO IMPROVE RETENTION Employee turnover is one of the largest problems for many organizations, yet it is one of the most unknown cost. Although employee turnover may not seem like a big deal, it is very expensive part of the business. A study done several years back showed that less than 50% of businesses had a plan to determine what turnover was actually costing them. A majority of businesses simply went on intuition alone to determine turnover cost (Blake, 2006). With a competitive mobile workforce it is crucial for businesses to figure out what turnover is actually costing…show more content…
o Management Time o Training cost-orientation, classroom training, ramp-up period, certifications, and office set-up. ➢ Indirect costs: o Lost productivity from departing employee o Reduced morale o Additional work to other employees o New employee burning business poor job skills, bad customer service, reduced quality, and errors. o Lost clients from prior employee leaving o Cultural impact [pic] I am sure there are many more factors than what I have listed above to determine the cost but these are universal factors found amongst many organizations. Several of those listed above were found from multiple sources online and my own personal insight over the years (Boushey & Glynn, 2012) (Blake, 2006) (Bersin, 2013). As employers start to realize that turnover is a problem things should begin to shift within the business model in several areas. Some companies are starting this by implementing processes that will help identify the reasons behind high turnover. Although turnover is expected and good in some cases it is necessary to have a strategy in place to keep the good workers and avoid losing them if possible. There is an understanding that businesses realize that when you are first starting you are considered an investment for a period of time. Meaning that until you reach a certain point in the process you are costing the company and not making them any
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