cost of turnover vs. The cost of retention
Fifty-five percent of all employees plan on or think of quitting
their jobs at any time.
Maybe that’s not alarming to you at first glance, but let’s
look at some of the possible costs to an employer when a worker
in morale of other employees
in unemployment compensation
And there’s more. The cost to replace those
sheep that have left the fold can be equally as steep for an
to attract potential candidates
And yet another problem looms when vacant positions are not
immediately filled; remaining staff usually have to pick up the
slack to provide the consistent, quality customer service and
products customers have come to expect. This may burn-out good
employees and could contribute even more to turnover numbers
and the cost incurred in such situations.
So how do you keep your employees contented, challenged, and
engaged in their work?
Try showing your employees more respect and recognition for a
job well done. Communicate company goals often and clearly. Ask
workers for feedback and listen to their views. Create company
e-newsletters or bulletin boards to post new information about
the corporation. Give annual reviews. Tie raises to performance.
Celebrate years of service and promote from within.
Provide more benefits.
In a study conducted by Robert Half Finance and Accounting with
2,700 human resource and finance executives in nine countries,
the results showed that companies have provided more benefits
over the last two years to try to keep employees. Some of those
benefits were providing company vehicles, allowing employees
to take part in corporate decision making, offering group insurance
plans and customized salary packages, and providing lunch coupons.
But training tops the list.
Fifty-eight percent of those same companies polled, believe the
most important benefit to enhance retention is to provide more
training and development opportunities. Employee training is
an investment—an investment in human capital.
“Surely there comes a time when counting the cost and
paying the price aren’t things to think about anymore.
All that matters is value—the ultimate value of what one
James Hilton (1900-1954)
by Kathleen Weber, Training Coordinator, Business Institute
of Highland Community College
Will Fatten Payrolls, “From ‘The Herman
Trend Alert,’ by Roger Herman and Joyce Gioia,
Strategic Business Futurists, June 14, 2006
Buzz: Training News From Around the World, Retention-Raised
Agenda, Employee Benefits, June 14, 2006, page 12,
by Design Newsletter from Nathan Greeno-The Bridge Builder,
Drawing Board Consulting
Group, “Building the
Bridge of Human Capital Strategy”, Volume 4,
Edition 6, Number 36, June 2006, The Art of the Value
Solutions is a monthly e-newsletter designed to inform you of
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Before You Start Seminar
This two-hour seminar helps individuals prepare to start their
own business. The seminar includes information about business
plans, how to begin writing a business plan, and how Highland
Community College’s Small Business Development Center
August 2, 6 p.m.
Student/Conference Center, room H-210
For other upcoming Business Institute classes and programs check
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