Employee Turnover

Granted, it's early in December and maybe a bit early to begin calculating my 2012 turnover rate.  I'm concerned that the organization is developing a revolving door when it comes to the employees.   After calculating I find my turnover is at 20.48%.    Should I panic? 

  

Turnover can be a result of many factors and oftentimes it isn't about the money. It's about the environment. The employee can be unhappy, feel under appreciated. They may experience supervisor conflict, or the supervisor may have poor leadership skills.  Employee pay may be unequal or substandard.   If their skills are in demand, they may be lured away by other employers.  Perhaps the employee feels that he/she has no future in the organization.

 

When an organization must replace an employee, the organization will incur direct and indirect expenses.  Expenses such as recruiting, new hire training, loss of productivity, etc.  To replace even an entry level employee can cost up to 25% of his/her salary.  And then there are other hidden costs of high turnover.   Surviving employees have to absorb the work of the departing employees,  may experience increased stress levels, feel demoralized and ultimately move on as well. 

Take a look at your turnover.  Is it beneficial or harmful?  What steps can you take to halt and/or reduce employee turnover?