TO CONQUER TURNOVER, FIRST CALCULATE ITS TRUE IMPACT

09 Feb TO CONQUER TURNOVER, FIRST CALCULATE ITS TRUE IMPACT

Even in this day of penny-pinching, few CEOs understand how much money their companies lose by failing to retain key employees.  Examples: Replacing an HR Manager in the automotive industry can cost $133,803.  A machine-works company that loses a skilled, salaried machinist can lose $102,796 from its bottom line.  And the loss of a store manager costs a fast-food chain $21,931.

 Now, here’s your chance to calculate the cost of losing one of your company’s stars.  Select a job function with a lot of turnover.  Calculate the full cost of that function by entering the average wage for that position on Line 1 and then multiplying it by 130 percent to include benefits costs.

 Next, multiply the total wage by 25 percent.  This cost per employee may then be multiplied by the number of ex-employees on Line 6 to arrive at the total cost of turnover in this position.

 HERE ARE THE STEPS: 

 HERE’S AN EXAMPLE: