The Real Cost of Employee Turnover
Years ago when first starting to report on HR metrics, naturally the first item is employee turnover. Curious about the real impact of turnover I began searching for figures. What I found certainly surprised me.
More surprising was the result of me casually sharing with some colleagues, and how quickly they took the high end of the range and applied to all positions, from the CEO down to the shop worker. 250% of the annual salary became the figure folks in certain departments would trot out when it served their needs.
More surprising than the number was the reaction of colleagues when sharing the range of costs. The surprise was in how they used the information. If I gave a range of ‘between 10 and 250 percent of annual salary’, I quickly learned the takeaway from this was ‘250%’. From the CEO down to the shop worker, 250%.
Quickly, I learned I had to be much more clear in the cost projection. What I never found back then was a simple, flexible tool for calculating turnover. You could of course build your own, but why bother if someone has already done the work!
Once you find your number – check out Why to Use People Analytics for beginning thoughts on how to apply People Analytics, and make a real impact reducing cost – by reducing employee turnover.