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What Is the Real Cost Of Employee Turnover Essay

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What Is the Real Cost Of Employee Turnover

The employee turnover rate and the retention of skilled employees is a major problem businesses face. “Conservative estimates put the cost of replacing a lost employee at 25 percent of the annual compensation amount. For the typical full time employee who earns $38,481 and receives $50,025 in total compensation, the total cost of turnover would amount to $12,506 per employee.” This being the case employee turnover is a major cost and can significantly influence the bottom line so it should be avoided if possible. (Bliss)

“Employee turnover is a critical cost driver for American business. The cost of recruiting and filling vacancies, lost productivity from vacant jobs, and the costs of
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• Manage different people differently. Know that not all people have the same motivations.
• See yourself as serving your people, and not the other way around.
• Be tolerant of diversity, but intolerant of nonperformance.
• Surround yourself with the most talented and don’t feel threatened.
• Care about your people and take a personal interest in what is going on in their lives.
• Let your people move on to a growth assignment outside the team instead of blocking the move.
• Give feedback, praise, and recognition on the spot.
• Know when to confront nonperformance and either redesign the job so that it fits the individual, reassign the person to a better fitting job, or terminate when necessary.
The bottom line is the way you treat employees has tremendous impact. “True solutions require management attitudes and behaviors towards the employees to change.” Some of the factors that influence an employee to leave are the lack of challenging and stimulating work, fair pay, the tools and resources needed to do their jobs, recognition for work well done and involvement in the decisions that impact their day to day lives at work. “However, not every employee who leaves your company is dissatisfied. Some will retire, relocate, quit because of family
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