Posts tagged turnover

fluctuation is inevitable. It is a fact of business life, the associated costs. Or are they? The cost of staff turnover can be enormous, ranging from 1 / 2-5 times the annual salary of an employee depends on its position. It is neither possible nor desirable to completely eliminate the sale of your business. Some of the costs associated with staff turnover inevitably is connected and is expected to occur in the ordinary course of business. BUT NOT ALL COSTS! You can do something about these costs in sales …

Before you begin to struggle against the cost of employee turnover, you must be aware that these costs are and what they mean. Of course there are obvious costs that come immediately to mind, but there are also many other costs that you have never thought of that can can have a serious impact on your results.

Hard costs:

What more can be used as a staff about half the annual salary of a skilled worker low cost hourly rate plus benefits, while the loss of a member of the Executive C-Level Top from March to May cost times his annual salary and benefits. Br
/>
Remember: If your company has a turnover of 25% (approximately the national average) and has 40 employees on each winner, 000 € per year, you do your costs by more than 10 of these employees during the year at least 5,000! What could you not with a 0000 + in additional resources?

Compensation may also be a large part of the cost of employee turnover. This is particularly true with highly qualified personnel and management level. What are the wages that you will never see any return on your investment!

Recruitment costs: Each time an employee is lost, bicycle rental and selection must begin all over again. These costs can be substantial: the cost of advertising to advertise your jobs to the masses, the costs of recruiting agencies, background checks, reference checks, drug testing, the cost of paying overtime, temporary help and much more.

Rental Costs: Once you choose a setting that does not stop the cost of sales, but rather to continue. Log on bonuses, relocation expenses, and any increase in the level of treatment needed to attract new talent add up quickly. can lead the life of HR managers and train the new employee expensive and unnecessary. These are all tangible costs that could be avoided with better employee retention.

Other costs: food for thought

There are clearly a number of cost of sales that can be easily quantified, but these costs are often just the tip of the iceberg. There are many costs of turnover seems never to have a balance sheet or profit and loss account of the serious impact on the outcome of your organization.

First consider the impact on productivity, caused by the turnover. The average time to recruit 8 weeks and hire a new employee. During this time, the production can be seriously shaken. Other employees have to take over production, often taking on tasks and responsibilities they are with or without training, this may morale of the production team and others injured drain unusual. The negative impact on production by the turnover does not stop when a new employee is created set. There is always a learning curve for the works for some place, it can short and insignificant, while for many others it may be a considerable time. Meanwhile we have a new employee “get in step with the rest of the team, the production never be as good as it could be.

It can also be a significant loss of activity due to attrition. Many people now enjoy a loyal customer base, with which it has a real connection. The father of a close friend of mine is a perfect example. As a distributor of parts for an automotive service center, he has worked regularly with many customers and formed a real relationship with this customer. They trusted him, and he knew he would do everything possible to help them. If this person leave this job and went to a competing service center, so do almost all of its loyal customers. Little did the company knows that customers are loyal to the workers, not the company were – and they paid dearly when they are not able to stop him were on board.

Another important cost factor for companies when mobile employees, the loss of organizational knowledge. Many employees are in a position to be experts in the field they work and when to leave them, the fact that knowledge. These employees are no longer available to share knowledge and mentor junior staff of the company. These costs are almost impossible to quantify, but it is sure to be an influence on the final result.

What can you do about it />
The stakes are much higher when it comes to good employees in your company. Although some sectors are more sensitive to higher turnover than others experience. The turnover of the accommodation and catering industries and leisure and hospitality on average more than 50% per year. If you participate in these sensitive sectors, or any other field to high turnover, you know, and expect that sales will be challenging, but it does not have to cripple the ability of your business to succeed.

A study by the Harvard University reported that 80% of employee turnover, mistakes in hiring can be attributed to process. The impact is enormous: up to 80% of your sales hiring mistakes can be attributed. The problem lies in the selection of employees. Simply hired the wrong people for jobs badly.

At the Michigan State University shows that the traditional recruitment techniques – CV reviews, interviews and reference checks only a 14% probability of successful work on loan. Only 14%! Your chances of winning at blackjack hand are much better at around 40%. If you rely solely on traditional setting, you really gambling with the future success of your business.

to study Michigan State University does offer hope in relation to these terrible odds of selecting the right employee. %!!!. Efficient use of strong personality assessments appear to hire the probability of successful job increase at 75 The power of these reviews is huge and gives a good sense of values, attitudes and qualities the applicant has. This information can then should be compared to a reference value for the job and informed decision in attitude can now be made. The results are amazing.