Have you ever worked out how much it costs to replace a member of staff? I have, and I can tell you it’s expensive. Cost of Turnover Calculator
When calculating the cost we often forget to take into account some of the hidden costs such as; needing to have a contractor to fill in, the time it takes in writing an advertisement, how many hours of our time it sucks up in screening applicants then coordinating interviews let alone actually interviewing prospective new employees.
Don’t get me started on how much time it then takes to on-board and get the new employee up to speed, a hidden cost that mounts up.
Would you like to get a sense of how much it costs to replace an employee who left your organisation?
Attached is a calculator that will help you. Cost of Turnover Calculator
By filling in the blank spaces in the Cost of Turnover Calculator we created, you can see how much it costs to replace an employee. Multiply this figure by the number of people you have needed to replace in a year, and you get a much better picture of how much attrition actually costs.
Some turnover is healthy and even necessary, however sometimes good, valued employees leave an employer for reasons that, given some time, effort and money could have been avoided.
Next time one of your team enquires about the likes of coaching to develop their skills, or requests a course, or is interested in more flexibility at work, or wants a mentor, consider how much that costs compared to the cost of
replacing them if they disengage then leave.
June Parker is Director of Selection Partners, a talent consulting business, which provides coaching, development, HR consulting and recruitment services to awesome clients, both in organisations and directly to individuals.