Employee Turnover Problem

837 Words4 Pages
Employee Turnover Problem - How to Decrease Turnover Do you know how much your employee turnover is costing you? What could you do with the time and money you are spending on new employees who don't stay? What are you risking each time you hire a bad Employee? The Problem of Employee Turnover The direct costs to your bottom line of employee turnover can cripple your business. Think of what it costs you to recruit, train, and get a new employee up to speed. In the current job market, with an overwhelming number of job seekers currently out looking for and applying to jobs, companies with high turnover are having an even more difficult time filling their open positions with qualified candidates who will not just leave or be fired in the future. Although the actual cost may vary depending on the job or industry, the cost per new hire can average from $2000 to $8000 per hire. Even if you only turnover 10 employees per year, that is $20,000 to $80,000 off of your annual profits. This doesn't even take into consideration the indirect costs incurred by turnover. Employee Turnover Also Effects: * Employee Morale * On the Job Injuries * Customer Relationships * Effectiveness of Other Employees * Increased Theft The Solution for Employee Turnover The answer to the problem of employee turnover begins with the hiring process. To put it simple, you need to make better hiring decisions. This means that you need a system for collecting and screening through your employment applications to quickly weed out those who don’t fit your minimum qualifications. Once you have a group of “qualified” candidates, the next step is to generate more information than what is normally on an employment application or learned in a standard interview. This information comes through the use of employee assessments. These assessments will provide you with valuable
Open Document