Employer turnover is a major issue for many companies out there today. Some think they have it under control while others know it is a problem, but still cannot find a way to fix the problem. No company is immune to employee turnover, especially those in Des Moines. In this story, we will show you exactly why your company cannot afford employee turnover.
Overworked employees are a major reason why your company cannot afford employee turnover. These employees will take on the extra workload when other employees leave the company for other jobs. The more often this happens, the more overworked your remaining employees will be, which can lead to burnout.
Cost of Job Interviews
The higher the turnover rate at your company, the more interviewing costs you will be spending. As you continue to hold job interviews because of people constantly leaving the organization, your budget will take a major hit. Job interviews cost time and money for your company, especially if you need to travel to meet with job candidates.
“Hard” Costs of Employee Turnover
Here is a list of some of the most common ‘hard’ costs of employee turnover:
- Severance pay
- Administration costs for payroll changes and exit interviews
- Bringing on new hires to replace former employees
- Paying temp workers to fill the vacancy
- Advertising the job vacancy
- Reviewing job applications
- Recruiting costs
“Soft” Costs of Employee Turnover
Here is a list of the most common ‘soft’ costs of employee turnover:
- Workflow issues
- Missed deadlines
- Lost expertise
- Decreased productivity
- Decreased customer service
- Higher stress levels
- Reduction in employee morale
- Increased absenteeism
Training Costs Cause a Major Hit
When your company is dealing with a high rate of employee turnover, a major problem will be training. The costs will be very high in this section of the issue for various reasons. Those include someone spending their time training the new employee, preparing and reviewing training materials, enrollment of the new employee in the benefits program, accommodation costs and administrative processing.
Hiring Costs Skyrocket with High Turnover
Hiring costs from employee turnover are very high for companies. These include recruiting costs, interview costs, post-interview costs and employment costs.
Of this group, employment costs can really hurt your company’s budget. Companies may need to pay to help the employee relocate, if necessary, and maybe even sign them to a bonus when they put their signature on the contract.
The second most expensive group here will likely be the interview costs segment, which includes paying for travel accommodations for candidates, travel costs for staff members to attend career fairs or recruiting events and even time spent during the actual job interviews.
The bottom line here is that employee turnover in Des Moines is unaffordable for your company. The quicker you make a move to change your hiring and retention processes, the better your bottom line will be in the future.