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Turnover, what does it cost?

Written by: Jeremy Heighton

Article Overview: Reducing turnover is a critical step in improving your resiliance during tough economic times. However, Retducing turnover isn't enough, you must retain the right employees. This is the first section in a four part white paper on reducing employee turnover.

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Turnover, what does it cost?

Most businesses operate on the premise that a certain number of staff will leave over the course of a year. However, there are exceptions to this rule, such as seasonal industries like tourism and service companies where higher turnover occurs on a regular or seasonal basis.

An organization can be considered “turnover stable” when employees leave at a rate that does not impede or restrict normal operations. In other words, their knowledge, skills, and contributions can be reasonably managed by the remaining workers until a replacement is found.

The costs of losing a worker vary by industry, job type, level of corporate knowledge, internal and external organizational economic factors, etc. Using the “WOW Turnover Calculator” you can determine the pure cash impacts of turnover on your organization. When you compound these cash costs with the hidden expenses such as corporate knowledge loss, team cohesion breakdown, competitor advantage and lost individual, unit or organizational productivity, these hidden costs can run in the tens of thousands of dollars, and in some cases, millions of dollars.
In one 3-year case study, a Florida health care organization reduced its turnover by approximately 20%. By doing so, they retained over 4 million dollars in earnings!

If you create a leadership culture, provide a strategically-crafted remuneration system, and provide fair bonuses and incentives, you will add to the level of retention in your organization. This, in turn, leads to greater organizational stability and employee cohesion.

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Download this whitepaper and try our online cost calculator to discover what your turnover is costing you, and what reducing this factor of your business can save you.

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Article Tags: competitor, corporate knowledge, cost calculator, economic factors, florida health care, health care organization, hidden expenses, industry job, job type, knowledge skills, organizational productivity, organizational stability, premise, remuneration system, seasonal basis, seasonal industries, team cohesion, thousands of dollars, turnover calculator, whitepaper

About the Author: Jeremy Heighton
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Jeremy is a passionate business consultant who understands the realities of economies, stafing and delivery of service based business. He started his working life in sales and marketing where his high-energy personality and terrific speaking voice led him to an early career in radio and television. He eventually moved to Canada’s North, where he was recruited by the Canadian Federal Government where he spent almost a decade teaching career planning, skils devlopment and public services. Quickly realizing that many staff didn’t know how to give effective presentations, he started training them. And from there, the seeds of WOW were planted, soon growing into an international speaking and consulting business. A sought-after speaker, Jeremy is also an established member of the Canadian Associations of Professional Speakers, Toastmasters International, and the International Federation of Professional Speakers

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