Employee Benchmarks, HR Metrics, and Turnover Rates
A unique assessment model that makes employers aware of the costs of losing employee’s, how it affects a company’s profits and how a reduction in turnover costs can significantly lessen the financial impact on a company’s bottom line results.
Costs Associated with Turnover:
Total Separation Costs
Exit Interviews
Administrative Functions Associated with Termination
Costs from Unfilled Jobs
Total Replacement Costs
Pre- and post-employment administrative functions
Entrance interviews (internal)
Testing
Postemployment Expenses
Background and medical exams (internal and contracted)
Total Training Costs
Formal training program
Orientation
Preturnover Loss of Productivity
Revenue Loss from Unfilled Jobs
Loss of Productivity During OJT
Cost of Turnover Analysis makes employers aware of these costs which can often escalate into the thousands and sometimes hundreds of thousands of dollars. We can breakdown the cost of turnover by region, department and job function. We can adjust our model to meet the unique specifications of your company size and business type.
Our cost of turnover model can not only draw attention to the company’s cost of turnover now- we can project your cost of turnover going forward. By identifying your company’s turnover rate, we can project how much it will cost you ten years from now to fire someone. This is important because competition for business continues to increase at a rapid rate. You may not be able to project whether or not you will land a certain account or project how many widgets you will sell (as there may be an alternative to your product 10 years from now) but your costs of losing key employees are real, quantifiable and unless you are 100% certain your employees will be around in 10 years, you need to be prudent in your company’s projections and factor in retention costs.
Our application will show how your turnover costs are affecting your profits now and project how they will impact your profits going forward. From these numbers we can tell you how much additional revenue your company will have to make in order to compensate for the escalating retention costs. Then you can answer these questions: Is it possible to grow my business x amount in order to compensate for the retention costs? How will I continue to meet customer demand if I keep losing employees to competitors? How will my current employees react to cutbacks because of the escalating retention costs? How will this effect morale and productivity? When employees are not happy with their current employment situation they usually do one of 2 things- work less or quit.
Our strategic analysis of your company can project how a decrease in turnover will effect profits and sales going forward. Additionally, our consultants will work with you and your employees to identify your company’s best practices and leverage those strengths against any potential hurdles, now and going forward. Our consultants (who each have over 15 years experience in organizational development) know that each company is unique and is comprised of the people who work there. To know how to make your business the most productive, you need to know the strengths, concerns and aptitudes of your employees. Is it better to take the time and fill a vacancy once or haphazardly fill it repeatedly?
By answering a few questions on our website we can provide you with a rough estimate of your company’s retention costs and you can decide if you think this is something to invest some time towards.
Would you like to know how to get these results for your organization? YES.
Talk to a HR metrics expert. Request a quote now. Call us at (212) 545-1280 or email us here.