Ouch! Staff turnover is painful.
Do you know the cost of staff turnover to your business?
Most people accept that a business's most valuable asset is their staff right? So why is it that most employers do not take stock and critically assess their capability to retain staff?
I would argue that the most common reason is because the true cost of the turnover cycle to the business has never been evaluated. I am sure if a business knew how much money was being spent on this budget alone this would prompt action. But, often it doesn't and within certain industries such as Cleaning Services, Sales, Care Sector and IT it seems to have become the accepted norm that staff will be constantly coming and going. There are a few exceptions within these industries of course but why only exceptions?
So, here are a few cold, hard facts to prompt discussion and action.The average logistical cost of replacing an employee is £5,433.00!
So, even if a business is replacing only 5 staff per annum this is costing £27,165. If no temps are hired to backfill whilst the search is on for replacements the annual cost for 5 people is still £9075.
Can a business continue to waste money on this avoidable expenditure? And even if profit margins allow for the bearing of this cost why would a business want it to continue? It simply doesn't make sense to me. What about you?