turnover

When accounting for the costs (both real costs, such as time taken to select and recruit a replacement, and also opportunity costs, such as lost productivity), the cost of employee turnover to for-profit organizations has been estimated to be between 30% (the figure used by the American Management Association) to upwards of 150% of the employees ' remuneration package.[4] There are both direct and indirect costs. Direct costs relate to the leaving costs, replacement costs and transitions costs, and indirect costs relate to the loss of production, reduced performance levels, unnecessary overtime and low morale. The true cost of turnover is going to depend on a number of variable including ease or difficulty in filling the position and the nature of the job itself.
Employees are important in any running of a business; without them the business would be unsuccessful. However, more and more employers today are finding that employees remain for approximately 23 to 24 months, according to the 2006 Bureau of Labor Statistics[citation needed]. The Employment Policy Foundation states that it costs a company an average of $15,000 per employee, which includes separation costs, including paperwork, unemployment; vacancy costs, including overtime or temporary employees; and replacement costs including advertisement, interview time, relocation, training, and decreased productivity when colleagues depart. Providing a stimulating workplace environment, which fosters happy, motivated and empowered individuals, lowers employee turnover and absentee rates.[10] Promoting a work environment that fosters personal and professional growth promotes harmony and encouragement on all levels, so the effects are felt company wide.[10]

Continual training and reinforcement develops a work force that is competent, consistent, competitive, effective and efficient.[10] Beginning on the first day of work, providing the individual with the necessary skills to perform their job is important.[11]

References: 4.Jump up ^ Schlesinger, Leonard A.; James L. Heskett (1991-04-15). "Breaking the Cycle of Failure in Services". MIT Sloan Management Review 33 (3): 17–28. Retrieved 2009-01-21. 5.Jump up ^ Williams ACdeC, Potts HWW (2010) 6.Jump up ^ Ruby, Allen M. (January 2002). "Internal Teacher Turnover in Urban Middle School Reform". Journal of Education for Students Placed at Risk 7 (4): 379–406. doi:10.1207/S15327671ESPR0704_2. 11.Jump up ^ Costello, D. (2006, December). Leveraging the Employee Life Cycle. CRM Magazine, 10(12), 48-48. Retrieved February 23, 2009, from Academic Search Premier database. 12.^ Jump up to: a b c d e f Testa, B. (2008, September 22). Early Engagement, Long Relationship?. Workforce Management, 87(15), 27-31. Retrieved February 23, 2009, from Academic Search Premier database. 13.Jump up ^ Skabelund, J. (2008, May). I just work here. American Fitness, 26(3), 42-42. Retrieved February 23, 2009, from Academic Search Premier database.