Forecasting and Preventing Employee Turnover to Increase Profits

There are many costs involved in doing business. One of these costs is turnover. When employees leave the organization, they represent investments that are no longer reaping dividends.

Turnover involves separation costs including:

• the costs incurred for exit interviews, and
• administrative functions related to the employee’s exit.

Replacement costs include:

• the costs of attracting new applicants,
• entrance interviews, testing,
• travel/moving expenses,
• preemployment administrative expenses,
• medical exams,
• acquisition and dissemination of information, and
• training costs.

In addition, there is the cost of the performance differential between those employees who leave and their replacements. These costs add up to a substantial part … Continue Reading…