What is the true cost of employee turnover?
We’d like to ask you to take a few moments to consider how many of the people you employed during the last 24 months are still thriving as part of your team? When we pose this question to hiring managers and businesses owners, we are typically met with responses which proudly relay employee retention figures of between 70 and 75%.
Now, you will probably agree that, at least at first glance, these percentages look quite impressive.
When we look at this data however, we can’t help but see that between 25% and 30% of the time, the recruitment process has resulted in failure. That might sound harsh, but hear us out here.
The reasons that lie behind bad hires are myriad and the costs that result from every bad hire are so often simply accepted as being part and parcel of being in business. But do you know precisely what the cost of employee turnover looks like for your business?
We believe that if you had this figure in front of you right now, with a detailed breakdown of exactly where those costs have been incurred, you would want to take steps to enhance your hiring process and mitigate the impact on your bottom line.