Step One: Commit to zero turnover
The cost of hiring and training a new employee can vary from 25 percent to 200 percent of annual compensation. Costs include customer service disruption, emotional costs, loss of morale, burnout/absenteeism among remaining employees, loss of experience, continuity, and "corporate memory." (American Management Association).
The value of keeping one front line employee is many times greater than the cost of losing one, because turning someone into a 20-year employee can save 10, 20 or more 'turns': $100,000 or more. (Sasha Corp. www.sashacorp.com)
Do you know what your employee turnover rate is and how much it's costing you?
Calculate the Cost of Employee Turnover
The financial and non-financial outcomes of reducing employee turnover are significant. Reviewing various aspects of your organization and taking appropriate action will help you reduce your organization's employee turnover. While this process takes time and effort, it will save the organization time, effort and money in the long run. The result of this process is improved organizational performance, productivity and profit.
