- Lowered productivity. In the 90’s there was a study that came out that highlighted that a new employee did not earn their full salary until they have been employed for eight months. This totally makes sense when you consider that the person who left was doing her role largely autonomously.
- Lost knowledge. Performing the tasks of a former employee may be easy, though it takes time to build the specific knowledge she/he had. It’s about knowing the people, the traditions, the location of relevant information, what the boss likes and a million other things that come from working for a company for a long period. All that goes away when someone quits.
- Remaining staff taking up the initial slack. Whilst this may not be a financial cost this is a huge expense on the overall wellness of your employees. As they get stretched thin, their quality of work goes down as does their satisfaction and engagement. And the longer they stay in their overworked roles, the harder it will be for you to regain their goodwill even after you’ve filled the vacancy.
- Training costs. Paid training costs are obvious. Though the expenses of having someone initially train someone is a huge cost, when you consider that the other person’s duties are not being performed.
- Interviewing costs. It takes time to go through resumes, talk with numerous people, do formal interviews (which take an inordinate amount of time), talk with colleagues, and figure out who is the best employee.
Estimates on the total of these costs run as high as 150 percent of an annual salary. Much less for lower level positions, but still significant enough to make retention a high priority for your business.
Sometimes staff turnover cannot be avoided, though when it can be, you should do everything in your power to keep the loyal employee. Loyal employees are loyal to your company. They work hard for their pay and are committed to your company’s success. Loyal employees may someday leave, but while they work for you, they do their best and often even put the company’s interests ahead of their own.
Not sure how to ensure your employees become loyal employees?
Then check out the many resources on this website.
Until next time…..
Be well and remember to make each day meaningful, memorable and magical………..and never, ever, ever stop dancing!
With Love & Gratitude