Replacing staffing is not as easy as companies think. Work productivity and talented employees will be lost for some months due to the dismissal or voluntary resignation of the worker.
The figures vary depending on the relevance of the lost position in the company, this is why we will show you the most important variables to recognize how much would be the loss due to the loss of staffing.
Some of them are:
- Talent acquisition costs: this includes posting positions, interviewing, shortlisting, screening, and hiring.
- Training associated costs: Onboarding and administrative costs related to time management.
- Productivity loss: You could expect that this new person’s learning curve can take 1 or 2 years to achieve the productivity efficiency already reached by the old person.
- Employee demotivation: The remaining employees become demotivated and disassembled, slowing performance and hurting the team’s morale.
- Mistakes and Customer success: new workers need to learn to fulfill a clean job and they are more likely to focus on learning than solving problems.
- Onboarding costs: 10%-20% of an employee’s salary is invested to train new workers over 24 to 36 months.
- Organizational culture loss: A highly skilled employee delivers organizational culture to your business when attrition appears, the lack of expertise of a new person can hurt the business.
- Uncertainty awakening: A person leaving might awake other employees’ curiosity so they start asking themselves questions about why this person left the organization.
The reason why the true cost of turnover is quite hidden is due to the fact that many businesses don’t track the cost of it, and tracking the money, time, and risk of recruiting, screening, interviewing, onboarding, customer success reduction, productivity loss and many other variables exposed above can be exhausting. A holistic calculation requires a lot of collaboration between all departments, tools, and dashboarding.
You might like to read How to lead new generations to your business (link) in order to understand your employees and retain them in your company.
