Turnover Really Does Cost

March 14, 2011 - PRLog -- There are numerous statistics that support how companies calculate their turnover cost.  
And let’s face it…turnover is costly.   A component of our HR package tracks turnover by location or department to assist clients in those areas of their business that need attention and assist with manager training and retention performance.

From our client experience, industries with lower wages and higher turnover downplay the expense except in the areas of overtime and unproductive training cost.  

White collar industries have a more quantifiable turnover cost model due to the utilization of replacement services.  White collars are also quick to acknowledge that time really does equal money.  Unlike high turnover groups that live with this reality daily, white collar turnover can be more unpredictable and more disruptive.

For both groups, we all agree recruiting/replacement is a hassle.  It takes money, patience, and most importantly, time.  And is one of the least favorite areas we want to manage on a day to day basis.  It’s also an area we don’t think about until it’s too late.  Have you seen “temp” agency fees lately?   And when the economy continues its slow recovery, turnover will be a on-the-horizon issue.
 
Thoughts –

Understand what level of human capital is needed to operate your business and how to maintain that level “through” turnover.

Acknowledge there is a cost to turnover and know what that number is.  Having this will assist you with the process and the decisions you make.

Have a 24/7 recruiting mindset.

Contact us for a free copy of our Turnover Cost Calculator.

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Specializing in Payroll, Benefits Administration and H/R Services with a customized approach designed to provide seamless integration with your business, reduce staff work load and provide an information resource for compliance issues and regulations.