Is Employee Turnover Killing Your Bottom Line?

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Is Employee Turnover Killing Your Bottom Line?

It’s likely you’ve heard time and again about the costs of employee turnover. Some estimates put it as high as three times the employee’s annual salary. Consider the costs:

  • Loss in productivity of the employee’s own job while hiring their replacement
  • Loss in productivity of management as they screen, interview, and train the replacement
  • Cost of placing an ad / hiring a staffing agency
  • Time spent screening/sorting
  • Costs associated with onboarding such as background checks, drug testing, uniforms, equipment, etc.
  • Paid training (paying both the new employee, as well as the trainer)
  • Training materials / certifications
  • Loss of specific job / organizational expertise of exiting staff

It’s easy to see how the costs can add up quickly. And, if you are doing this more often than usual, it can take its toll on your bottom line. The truth is, every company will experience natural attrition. Sometimes this leads to a welcome change, but other times it can be quite devastating.

A Few Solutions

Some of the best solutions fall onto the shoulders of management. Reducing turnover may be an industry standard, but it can usually be lowered through:

Great Candidate Screening. Know what you are looking for, what you’re not, and screen all potential candidates for these skills and traits. Get support from a staffing company to provide high-quality candidates. Reduce the time spent by your team placing ads, sorting through resumes and screening candidates by letting the employment agency do the preliminary work.

Communicating Expectations. Be sure expectations are clear for all employees, and especially new staff. One of the most frustrating experiences new hires have is not knowing what is expected of them or how to achieve it. Be clear and consistent and make it easy for staff to follow directions. Set them up for success and show them the path for growth.

Accountability. When expectations are clearly communicated and met, or not met, accountability helps staff know what they can do to improve. Morale stays high and the right employees are retained when those who perform well are recognized and those who fall short are held responsible. The best way to make a high performer leave is to allow low performers to prosper.

Engagement. Check in on employee satisfaction before staff leave. Poll employees, as you would in an exit interview, to see if patterns emerge in areas of satisfaction or dissatisfaction, and make adjustments as appropriate. Focus on your people – they are one of your greatest assets in business.

Exit Interviews. When staff leave, have them complete an exit interview to learn more about the motivations and discover areas within the company that could improve or change in order to retain employees. Be willing to adjust, as appropriate, to keep valuable staff.

 

If you are in search of brilliant employees, let Colorado Network Staffing (CNS) help you find your right fit. CNS is a leader in staffing, staff augmentation, and contract management by acting as a sole human resource provider for our clients. Don’t waste your time, energy, and money on a bad hire. CNS has the experience, resources, and top-level management expertise to accomplish the tasks required on any size project. Contact us at 303-430-1441, and we’ll find you the best and brightest team.

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