The Real Cost of Losing an Employee
Statistics are a ”quiet” part of employee turnover. However, it is a fact that high employee turnover quietly increases every business or company’s cost and decreases overall productivity. Employee turnover cost statistics are part of all calculations done to decipher employee turnover and the consequences.
How to Handle Employee Turnover Statistics
Gathering information comes in a variety of ways. A company’s human resources officers or organizations call neighboring businesses and receive and share employee turnover rates. It is a way to gather the information that takes into account variables in communities and regions.
A second way to gather numbers concerning employee turnover statistics is by giving and participating in surveys. Comparable data is key to getting the overall picture when calculating the real cost of losing an employee.
The Bureau of Labor Statistics is a federal government office. Also known as the BLS, they provide online reports concerning all aspects of the workforce. They update employee separations and voluntary quits on a regular basis based on industry and region.
The best way to compare an employee turnover rate to others is by providing a benchmark for retention rates. A misconception to avoid when deciphering the figures is that money is the primary reason for employees leave. It will help to avoid reluctantly in investing in employee retention programs.
Dollar-Cost and Employee Turnover
The most essential part of employee turnover data is dollar-cost. Figures tend to create a proactive attitude.
Using employee turnover costs statistics calculator provides the ability to measure the cost of finding and training an employee and overall loss of productivity. The implementation of one of these calculators means that human resources, finance officers, and managers all see the dollar-cost of employee turnover.
Why Employee Turnover Happens
The reasons people leave a job varies from poor work culture, low pay, insufficient benefits, improper training, lack of recognition, and no employment development. But, the number one reason why employees quit is because of mistrust in management.
Building trust and a proactive approach to employee retention secure the bottom line from avoidable employee turnover. A one-size-fits-all approach will not work because of business-specific nuances. However, a trusted team leader will improve members of any team.
The real cost of losing an employee is not only in dollars. Work culture and attitude is a cost that numbers do not take into account. Stay interviews and employee retention programs is a positive step forward to not seeing a loss in morale or money. It takes a team who enjoys their job, trusts their supervisors, and compensated fairly to work towards uninterrupted success.