THE

100

PRINCIPLES OF HIRING ACCURACY

PRINCIPLE

#36
YOUR TURNOVER COSTS MORE THAN YOU THINK
Turnover in even 1 department could be costing your company millions of dollars. If you have high turnover & your company isn't working on this, it's because they haven't done the math.

YOUR TURNOVER COSTS MORE THAN YOU THINK

When it comes to employee #turnover, one behavior has always puzzled me.

It's the CFO who watches their finances like a hawk.

They reject any new budget request...

While paying zero attention to the MULTI-MILLION-DOLLAR employee turnover problem happening right under their nose EVERY YEAR.

If this describes your company, it's likely leadership doesn't understand what turnover is costing them.

It's estimated that replacing just one employee costs 30% (or more) of that person's annual salary. 30%!

These costs include:

-THE COST TO FIRE/RE-HIRE
-TRAINING COST (onboarding, training, etc.)
-VACANCY COST (lost value-creation while the position is vacant or the new hire is ramping)

Do the math & you'll find...

High turnover in even just 1 dept. could be costing your company millions of dollars.

The CFO can be a major ally in your efforts to reduce turnover.

You just need to re-frame the problem in a language they're familiar with (i.e. $$).

If they aren't okay with a $1K new budget request, they won't (or at least shouldn't) be okay with a million-dollar problem continuing unchecked.