Hiring an employee is only the first step.Retaining a positive, motivated staff and achieving overall high employee retention is vital for business success.
The costs associated with high employee turnover can include loss of customers and business as well as damaged workforce morale. In addition, there are costs incurred in advertisement, pre-screening, verifying credentials and references, interviewing, hiring, and employee training.
The direct and indirect costs associated with employee turnover can be as high as 200-250 per cent of salary. Not including the intangible cost associated with the replacement which include OJT, supervisor’s time, administrative, loss of team morale, quality, and customer’s dissatisfaction.