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.
Turnover, what does it cost? - To learn more about this author, visit Jeremy Heighton's Website.
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Jeremy Heighton
(Visit Jeremy's Website)
Jeremy 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 Federal Department of Fisheries and
Oceans Canada to develop a proactive
public relations program for the Pacific
region. Quickly realizing that many of the
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 a full-sized
business. “After 25 years, I don’t think
there’s any type of training I haven’t
done,” says Jeremy, who takes particular
pride in helping companies and
associations develop effective strategic
plans in a fraction of the time it usually
takes. A much 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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