16 Aug HR Managers – Do your employees know true value of their employment?
There has never been a more focus on employee retention. In this volatile economy, it is hard to keep the employees motivated and inspire productivity.
Many studies show that the total cost of losing an employee can range from tens of thousands of dollars to 1.5-
2X annual salaries. This could be crippling to an organization over time.
Consider the real “total cost” of losing an employee:
- Cost of hiring a new person (advertising, interviewing, screening, hiring)
- Cost of on boarding a new person (training, management time)
- Lost productivity (a new person may take 1-2 years to reach productivity of an existing person)
- Lost engagement (other employees who see high turnover disengage and lose productivity)
- Customer service and errors (new employees take longer and are often less adept at solving problems). In healthcare this may result in much higher error rates, illness, and other very expensive costs (which are not
seen by HR)
- Training cost (over 2-3 years you likely invest 10-20% of an employee’s salary or more)
- Cultural impact (whenever someone leaves others take time to ask “why?”)
HRsoft is passionate about the working professional and his or her organization. We have created Talent Center to cater to your Human Resources needs. Visit www.hrsoft.com to check out our suite of modules.