What is Turnover Costing You?

What is your organization's Cost of Turnover? Find out at our Cost of Turnover Calculator.

Employee turnover is a huge, almost incalculable, drain to the health and vitality of any business. The direct costs of attraction, selection, hiring and training are sobering enough… but when you layer on the indirect costs that include the additional strain on existing employees of running understaffed, and consider the additional strain on service delivery, the damage to relationships with customers and others… the toll mounts quickly.

Clients and prospects often ask us to build a case for the merits of HiringSmart on the basis of the impact to the P&L of reducing turnover. It’s a bit of a trap, for several reasons.

• One, turnover is often a bit of a red herring – and we often find that turnover spikes early on in our work, as people who should never have been hired in the first place decide to move on.
• Two, it’s a trailing indicator, the symptom of other problems. You can’t fix turnover by addressing ‘turnover’; you need to be willing to address the root cause.
• Three, it’s hard for us not to appear self-serving when our math turns up large, almost inconceivable numbers (and a matching ROI).

Our preferred approach has been to invite them to calculate the cost… but even then, there’s been lots of guessing and second-guessing, with little real buy-in.
We were overjoyed to find this resource on the web. It’s a compilation of other people’s research into the matter, which I’m always more comfortable reading. At the bottom, you’ll find a calculator that allows you to get a sense of what turnover might be costing your organization!

What is your organization's Cost of Turnover? Find out at our Cost of Turnover Calculator.