Turnover
Stop The Turnover Revolving Door by Using Reports from Abelson

Stop The Turnover Revolving Door by Using Reports from Abelson

Staff turnover is expensive!  A common “rule of thumb estimate” suggests it cost 25% to 200% of a leaving staff’s annual compensation each time someone leaves.  For example, an inexpensive staff person may receive a salary of $40,000 a year.  Add an additional $10,000 for health care, social security, medicare, and other fringe benefits and their annual cost is really $50,000.  Using our “rule of thumb estimate,” each of these staff that leaves costs the employer anywhere from $12,500 to $100,000.  Ouch!!!  Have several staff with a $40,000 a year salary leave in the same year and the costs go through the roof.

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The Biggest Misunderstanding of Why People Leave

The Biggest Misunderstanding of Why People Leave

The biggest misunderstanding of why people leave is that money will solve the problem. It’s a myth that paying people more is THE answer to retaining staff. It is true that certain people are driven by the need for money and the security money brings. They will leave for more money. If their primary and only motive is money, it won’t take much for them to leave and they will eventually leave no matter how much more money they receive from you. My advice is “let them go.” It’s just a matter of time before they will leave anyway. By meeting their demands for more money you risk causing compensation inequity related to others within your organization and significant negative impacts on profitability.

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