Employee turnover is a challenge that companies have to tackle to promote productivity, efficiency and employee satisfaction.
When employees get hired only to move on from their positions weeks or months later, projects get stalled and other staff members have to pick up the slack.
Every manager needs to keep one figure in mind: every time an employee leaves, it can take six to nine months of their salary to recruit, hire and onboard their replacement.
Thus, if that person made £100,000 per year, it can take from £60,000-£90,000 to replace them.
Due to the fact that modern employees are not as loyal to their jobs as in the years before, managers have a hard time keeping their star players.
A high employee turnover can devastate a company, forcing remaining employees to pick up the slack, and causing a loss in sales while a replacement is sought.
Loyalty is important in our personal lives; we expect it from our partners, family and friends.
However, loyalty is just as important in the workplace due to the fact that managers rely on their employees to do honest work, not divulge sensitive company information and to stick it out with the company for years to come.
Few things are as disruptive to a business’s success than valuable employees leaving the nest.
As the leader, you then have the option to promote other staff members that may not be as qualified, or start a long search for a suitable replacement.Learn More
Losing an employee is disappointing, and a high turnover rate leads to many disadvantages.
Having employees quit can create chaos when projects are not complete, and you must take on the responsibilities yourself or assign them to other staff members. Learn More
I just love Richard Branson’s quote, “Train people well enough so they can leave; treat them well enough so they don’t want to“.
This is really powerful because it hits hard at the reason why some people are loyal and committed to the company they represent, and others just go to work to do a job.
It reminds me of the story of the guy who dies and is offered the choice of the place upstairs, or the place downstairs. To help with his choice, he is allowed a day at each location to assess the merits of each. Learn More
The Headline in the New York Times read as follows:
Why I am leaving Goldman-Sachs
Greg Smith is resigning today as a Goldman Sachs executive director and head of the firm’s United States equity derivatives business in Europe, the Middle East and Africa.Learn More
