The Cost of Replacing Employees
WHAT IS THE COST OF REPLACING AN EMPLOYEE? Research by the Society for Human Resource Management indicates that replacement costs average from 50% to 60% of salary. Total overall costs including reduced productivity during an employee’s first 6 to 9 months increase that cost anywhere from 90% to 200% of salary depending on how specialized that employee is.
With average employee retention dropping from 9 years down to 3 years over the past decade, what is your plan to stop the bleeding?
WHAT IS MY RISK?
Number of employees 150 x Average salary $60,000 x 3-year attrition 10% = Replacement costs of $450,000 – $540,000
Replacement + Productivity costs of $810,000 – $1,800,000
WHY DOES IT HAPPEN? Research shows that a lack of employee engagement is a main factor driving the mass exodus of employees right now.
HOW DO I FIX IT? One of the easiest ways to address this very costly issue is to:
- Develop a reasonable employee training program
- Customize the training plan and the course curriculums to match what you actually need
Knowledgeable employees take action and get involved. They become engaged.
Since 2009 Borderless Learning has helped over 22,000 students from more than 2,700 companies. We have worked with small, medium and large companies, all the way up to 9 out of the current Fortune top 10. As a WOSB we have helped companies and the US federal government reach their diversity supplier goals.
We can help you too.
Email firstname.lastname@example.org for a risk calculation worksheet and to start building your training plan
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Rev. Dec 5, 2017