THE COST OF EMPLOYEE TURNOVER
Consider the cost of employee turnover. With one fewer worker, your
company’s productivity slips and sales decline. Your current staff members are
required to work more hours. Morale may suffer. To find a replacement, you
spend time screening and interviewing applicants. Once you hire someone, you
need to train that person. The cost of staff turnover adds up. Figures
vary, but it can cost as much as $2,500, depending on the position, to replace
a front-line employee. That is a hefty price to pay for not training staff.
Despite
the initial monetary costs, staff training pays back your investment. Here are
just some of the reasons to take on development initiatives:
- Increased
job satisfaction and morale among employees. This has an added benefit of
making your company more attractive to prospective employees.
- More
motivated workers, which in turn tends to increase productivity and spur
profits.
- More effective and efficient use of workers' time as a result of higher skill levels, combined with a better understanding of the job function.
- An
increase from employees in the number of ideas, recommendations and
suggestions for improving performance, or processes and procedures.
- Lower
overall employee turnover, and less absenteeism.
- Investing
in employee training enhances the company image as:
- a
good place to work
- a
company that offers its employees the opportunity to grow and meet their
individual goals and aspirations
- a
company that values employees
- a company that nurtures its employees
- Creating a pool of cross-trained employees can bridge gaps when someone unexpectedly leaves the company - or if they accept a transfer or a promotion.
- Doing so tends to create more efficient employees that require less supervision and who need less detailed instructions. This frees management's time for higher value added activities.
