Unmanaged employee turnover can easily steal your company's knowledge base, profits and competitive edge in the market, not to mention shifting the power from you, the employer, over to the employee. Turnover isn t an easily identifiable expense. The US Department of Labor estimates that it costs a company one-third of a new hire s annual salary to replace an employee. Employee turnover is very costly to any business and, ultimately, takes its toll on performance, productivity and profit. The financial and non-financial outcomes of reducing employee turnover are significant.
Many factors contribute to employee turnover.
Poor fit between the person and the job or the organization itself. Once morale is low, higher turnover rates are inevitable. Ways to reduce Turnover 1. Examine your employee selection methods. Make sure that your recruiting activities consider not only if the person fits the job, but also if they fit your organization.