How Much Does Employee Turnover Cost My Business?
We’ve all heard this: turnover is very costly. But, how many companies can truly quantify that cost?
There are certainly some very hard costs like job board posting, recruiting companies or human resources man hours. In fact, some studies by organizations such as SHRM predict that every time a business replaces a salaried employee, it costs six to nine months’ salary on average. For a manager making $40,000 a year, that’s $20,000 to $30,000 in recruiting and training expenses.
However, your biggest cost may never hit your books. Here are three very important things to consider with employee turnover:
1. Lowered productivity
The terminated employee spent hours each week doing something, and when those responsibilities cannot be completed, productivity is lowered. It’s likely the big, important tasks from the employee’s job can be done by others, but, what about the small nice-to-have-done projects? Not so likely.
2. Overworked staffers
Others are going to have to pick up slack when another employee terminates. If they take on responsibilities outside of the scope of their job and don’t receive a pay boost, you’re likely to have some disgruntled, overworked employees.
Perhaps the most obvious cost. Someone has to show the new employee the ropes. Also, there may be specialized costs associated with training the employee on your computer system or other processes.
As an employer, you can take measures to prevent turnover like benchmarking, getting feedback and exit interviews. But the best thing you can do as an employer in the Portland area is to hire the right employees at the beginning. Working with a staffing agency like NW Staffing can lower your turnover and increase retention allowing you to maintain high productivity and ultimately lower your bottom line.
If you’re ready to hire the best talent in the Portland, Clackamas, Beaverton, Everett and Vancouver area, NW Staffing Resources’ offers flexible employment services designed to fit your specific employment requirements. We’re a trusted provider of temporary, temp-to-hire, and direct hire staffing solutions. Call NW Staffing now!