HBRA EVENTS HBRA NEWS Six Steps That Will Reduce Your Employees’ Turnover By: Dr. Donald E. Wetmore Employee turnover, the loss of good employees, no matter how low that rate is, significantly takes away from your bottom line because it is costly and it reduces productivity. Reducing turnover significantly reduces those replacement expenses. How much does turnover cost? You have to include lost productivity, lost opportunity cost, recruitment costs and new training outlays and while there are many variables, from one group to another, research indicates that for entry level people of say $30,000 in salary, the replacement cost is approximately 40% of that annual salary, $12,000. For more mid-level people of say $60,000 in salary it jumps to 150% for a cost of $90,000. For senior people it goes to 400% of salary and higher. Bottom line? If a mid-level person costs $90,000 to replace and their average length of employment is 2 years, you incur an annual replacement cost for that position of $45,000. If the average length of employment can be increased to 4 years, your annual replacement cost for that position $22,500. That’s a reduction of $22,500 and if you have a staff of 10 people, that is an annual expense reduction of $225,000. Read More Dr. Donald E. Wetmore Certified Executive Coach, Consultant and Trainer Author, “Organizing Your Life” and “The Productivity Handbook” Productivity Institute Personal Productivity Solutions to Leverage Your Impact 127 Jefferson St. Stratford, CT 06615 (203) 386-8062 (800) 969-3773 ctsem@msn.com http://www.balancetime.com Follow me on LinkedIn Follow me on Twitter 18 HBRA of Fairfield County | JANUARY 2019
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