How much does employee turnover cost? Though the estimates vary depending on seniority, experience and specialization, the rough estimate is anywhere from a third to a half of an employee’s salary added to whatever the position pays, according to The Work Institute’s 2017 Retention Report. High turnover might work for McDonald’s, but chances are your business needs a more skilled workforce and delivers a more complex service or product than an order of fries.
What’s the rate of turnover? Towers Watson Willis in its Global Talent Management and Rewards Survey estimates on average one in three hires will be making a break for the exit doors within two years. Think about how quickly this can add up, but also ask yourself what factors might be sending a full third of employees to the want ads within 24 months? They were enthusiastic when you hired them: did they change, or are they not being adequately engaged?
Is HR a Service or Profit Centre?
HR is often viewed as a service helping the business but not necessarily helping the bottom line.