Diagnosing Turnover
How Much is Turnover Costing Your Company?
The cost of replacing an employee averages between one and two times the candidate's salary plus benefits. So for a $50,000 salary the cost of losing that candidate ranges between $65,000 and $115,000.
The cost is higher in sales departments, where the loss of productivity, revenue, cash flow, and even clients is astonishing. Whether your sales team is quitting or you have to let people go, turnover costs are painful.
You must stop the bleeding, tourniquet the turnover, and repair the wound. Just because you are letting people go versus having employees quit, doesn’t mean you truly understand the health of your business. Many managers think, “I have turnover because my team is not meeting quota and slacking.
I had to let them go.” Believe it or not, some people do things to get fired rather than quitting. Getting fired may not be good for a recommendation; however, it often does allow for an unemployment claim.
So ask yourself, are your employees trying to get fired? Stopping employee turnover encompasses...
