What Is the Real Cost Of Employee Turnover Essay -- essays research pa

What Is the Real Cost Of Employee upset The employee overturn rate and the retention of skilled employees is a major problem businesses face. buttoned-down estimates put the apostrophize of replacing a lost employee at 25 percent of the annual compensation amount. For the typical full time employee who earns $38,481 and receives $50,025 in total compensation, the total cost of turnover would amount to $12,506 per employee. This being the discipline employee turnover is a major cost and can significantly mesh the bottom line so it should be avoided if possible. (Bliss)Employee turnover is a circumstantial cost driver for American business. The cost of recruiting and filling vacancies, lost productiveness from vacant jobs, and the costs of training novel employees increase operating costs, skip output, and cut into pro hits. (Orville 5-7) Estimates of the costs of employee turnover vary widely and depend on whether all cost elements be recognized. The three primary element s of turnover cost include     Staffing sometimes called cost-per-hire include the costs of exit interviews, recruiting, job applications, application applicants, relocation expenses and signing bonuses.     Vacancy While a position is vacant, the productivity of the former employee is lost and the productivity of the overall organization is reduced, as be workers have to cope with being short-handed.     Training No new employee starts work at 100 percent efficiency. The replacement employees time, other employees time and valuable resources must be expended to train each new employee and to facilitate the transitions.So how do employers retain employees? Many employers try gimmicks, games, and prizes. F. Leigh Branham, reference of Keeping the People Who Keep You in Business offers the following advice for retaining employees      befoolt always hire the best, but hire the best fit.  &nbs p  Have the insight to realize that no matter what the job not just anyone can do it hygienic.     Focus on matching the soulfulnesss strengths to the right challenge and the right role, not on improving weaknesses to the point that every employee is well rounded.     Build a culture of consecrate by giving people free reign to ... ...er off in another political party or if your company would be better, off without the employee you are facing a positive situation and the financial impact whitethorn be a small sacrifice. However, if the employee is a true asset to your company it may be worth your time to try to sway him or her to rethink their decision to leave.The true cost of employee turnover can sole(prenominal) be determined by weighing all the facts and looking at how it impacts your organization. You need to look at all the factors, monetary as well as organizationally to determine if the outcome was negative or positive. kit and boodle CitedBliss, William. Cost of Employee Turnover. The Adivsor. 11 Nov 2004http//www.isquare.com/turnover.cfm.Branham, Leigh. Keeping the People Who Keep You in Business. Amacom Books.Javitch, David. "How oft Turnover is OK?." 01 2003. Entrepreneur.com. Entrepreneur.com. 01 Dec. 2004 .McNally, Steven. "Turn Away Turnover." Security Services. September 2004 16 - 19.Orville, Wilbur. Calculating the Cost of Work/Life Turnover. Workforce March 1997 5-7Unknown. "Employee Turnover - A Critical Human Resource Benchmark." hr Benchmarks December 2002 20 23