How Much Does Turn Over Really Cost?

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Have you ever considered using a resources staffing organization? It can save you tons of money and time in the end. Resources staffing groups take the time, looking through their vast collection of potential applicants, and screen out all but the best before they even get to you. But why waste your time and money on a resources staffing company when you can just sit down with a few applicants and figure it out on your own?

Because the chances of finding the right fit on the first try for you is slim to none. You will never have as big a pool of applicants to pull from, and you will never go through the rigors of background and reference checks like the company will. When you hire on your own, you are taking a gamble. When they give you a candidate to hire, you are making an educated guess.

Ultimately, the point is to find a new employee, a perfect fit for the company and the position, and have them stay with the company for a long time. No one likes turnover, and you run a higher risk of turnover by picking the best application out of a pile of four.

Turnover is not just time consuming, but incredibly expensive. The Center for American Progress found that employee turnover can cost a company over 20% of the salary of that employee. This cost includes lost time in interviewing new employees, lost labor with a lack of body, and working with extra bodies on to train and be trained.

Once you find the right employees, it does not take much to keep them happy. Training them should always be more than just handing the new guy an employee training manual. The benefits of employee training can be seen for the rest of the time that the employee is working for you. Proper training instills best practices, strong work ethics, builds character, prepares them to train new employees themselves, and makes them feel that the company cares.

Other effective ways to show your workers that you care, and therefore give them more reason to stay and care themselves, are employee of the month programs and employee involvement programs. By getting your employees invested in the success of your company, by making it personal for them as much as for you, you can be assured that they will give their best efforts and strive as hard as if they owned the company.

The trick to no turnover is having a staffing company pick the right employee for you, and then making sure that they care. Those may seem like obvious solutions, but most people do not consider them when interacting with their employees, and suffer in both the long and short term because of it.

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