“We train them. Then they leave. Train new people. They leave.”
This happened to one client until they finally decided it was time to stop being the free training center for their competition.
You may not have a revolving door, but the cost of losing even one employee is so high that every level of management must be concerned with retention.
The direct cost to replace salaried employees is estimated to be at least 6-9 months of pay and can be as high as two times the annual salary for a high-earner. For low-paid high turnover employees, the cost is at least 16% of their annual pay.
In addition to the direct costs, frequent turnover has a negative impact on employee morale, productivity, and revenue growth. Lost knowledge is a big problem as well, to say nothing of the stress and increased workload on other employees. While new people are found, hired, and brought up to speed, others suffer.
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