What Are the Costs of Turnover?
Every company is impacted by turnover, but some are hit harder than others. More than just an inconvenience, losing staffers is expensive.
The average cost-per-hire is $4,129, according to the 2016 Human Capital Benchmarking Report published by the Society for Human Resource Management (SHRM). The report also revealed the average annual turnover rate is 19 percent and employees have an average tenure of eight years with each employer.
Beyond monetary expenses, there are also plenty of hidden costs associated with turnover. Look at a few other ways your company is impacted by employee departures.
Strain on Existing Employees
On average, it takes 42 days to fill an open position, according to the SHRM report. This means even if a staffer gives two weeks’ notice, it’s unlikely you’ll have their position filled prior to their last day on the job. Consequently, the rest of the team is forced to pick up the slack by dividing the person’s key tasks up and completing them on top of their existing workload. This can easily lead to burnout, because doing more than one job takes a toll quickly.
Decrease in Productivity
When working with a limited staff, it’s nearly impossible to reach capacity. Productivity will inevitably take a hit, because there’s only so much time in the day. Overloaded staffers must complete the most important responsibilities tied to open spots on the team, but they don’t have the knowledge or capacity to do it all. Therefore, some tasks will go untouched until the position is filled and even those completed might not be the same quality you’re used to, because those stepping in for the interim haven’t been properly trained.
Lost Knowledge and Relationships
During their tenure with your company, employees gain a certain amount of knowledge and expertise that can’t be duplicated. Even if they write detailed instructions explaining how to complete their tasks, the new person won’t have their years of experience to draw from. Along with that, your organization also loses relationships the person had with patients and vendors.
If external contacts really liked the former employee, they might follow them to their new employer. Even if they choose to stay with your company, issues will arise if they don’t connect with the new hire.
Training a new employee takes a lot of time and energy. When managers and top performers are busy getting a new hire up to speed, they’re unable to fully focus on their own jobs. This can cause your company to miss out on business opportunities that could inflate your bottom line.
It doesn’t feel good to work for an employer that has a revolving door of talent. Company morale will plummet if your turnover rate is higher than average. This will cause people to feel ambivalent about their jobs and may inspire more employees to look for work elsewhere.
If your turnover rate is higher than you’d like, it’s time to start hiring better. To learn more about how we can help you find top behavioral health talent, contact us today at (513) 651-9500 or by email at email@example.com.