We all know that there are costs associated with employee turnover – reduced productivity, increased stress on remaining team members, loss of organizational understanding, time devoted to interviewing and onboarding replacements, etc. – but other than fees for job boards and recruitment services, those “costs” never require you to make a payment. The losses are in work not getting done and income not being realized, not in money leaving your bank account.
But what if that changed? What if every time a Team Member leaves you had to sit down and write a check? $2500 for lost productivity until a replacement is found and brought up to speed. $1500 for the customers who start to go someplace else because they’re no longer greeted by name when they come through the door. $5000 for the employee who is looking for another job because they are now trying to do the work of two people.
Would you start to pay closer attention to Team Members’ Engagement and Morale? Would you start to have more frequent conversations about career goals and opportunities? Would you (could you?) put more effort into getting to know your Team Members and building real relationships with them?
If your electric bill goes up, you immediately start to look for ways to reduce it. If the costs of repairing and replacing equipment get too high, you look at improving your care and maintenance programs. You shouldn’t have to receive an invoice for “Cost of Jill Leaving” to begin to look at turnover the same way.
Marco's Leadership Institute 