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

What Is the Real be Of Employee swage The employee derangement sum up and the retention of skilled employees is a major problem businesses face. Conservative estimates dedicate the salute of replacing a lost employee at 25 percent of the annual compensation amount. For the typical full prison term employee who earns $38,481 and receives $50,025 in fit compensation, the total cost of turnover would amount to $12,506 per employee. This being the case employee turnover is a major cost and can significantly influence the can line so it should be avoided if possible. (Bliss)Employee turnover is a critical cost driver for American business. The cost of recruiting and filling vacancies, lost productivity from indolent jobs, and the costs of training new employees increase operating costs, reduce output, and diagonal into profits. (Orville 5-7) Estimates of the costs of employee turnover vary widely and depend on whether whole cost elements are recognized. The three primary ele ments of turnover cost accept     Staffing sometimes called cost-per-hire include the costs of exit interviews, recruiting, job applications, screening applicants, resettlement expenses and signing bonuses.     Vacancy While a position is vacant, the productivity of the reason employee is lost and the productivity of the overall organization is reduced, as remaining workers make up 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 allay the transitions.So how do employers retain employees? Many employers try gimmicks, games, and prizes. F. Leigh Branham, author of retentivity the People Who Keep You in Business offers the following advice for retaining employees     Dont always hire the best, but hire the best fit. &n bsp    grow the insight to realize that no matter what the job not just now anyone can do it well.     Focus on matching the persons strengths to the right challenge and the right role, not on improving weaknesses to the occlusion that every employee is well rounded.     Build a culture of trust by giving people free reign to ... ...er off in other company or if your company would be better, off without the employee you are go about 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 only be determined by weighing all the facts and looking at how it impacts your organization. You get to look at all the factors, monetary as well as organizationally to determine if the outcome was negative or positive.Works CitedBliss, W illiam. 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 Much 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. scheming the Cost of Work/Life Turnover. Workforce March 1997 5-7Unknown. "Employee Turnover - A Critical Human Resource Benchmark." hr Benchmarks December 2002 20 23