Exiting Employees Cost Companies Big Money
Posted on August 29, 2011 by Katherine Razzi
Every time I hear that it costs a company a lot of money when good talent leaves, I shudder to think what these costs could be and would like to see an itemized list. I found one on Cooperative Extension of the University of Wisconsin, in an article by William H. Pinkovitz, Joseph Moskal and Gary Green entitled, How Much Does Your Employee Turnover Cost? They have an online employee turnover calculator that itemizes and adds up all the costs. An example of such a turnover cost sheet is listed just beneath the calculator.
So, now you’re wondering why talented employees are leaving. First of all, despite the national debt and extreme stock market fluctuations these past few weeks, people are looking for better work and finding it! To back up that statement, according to TrendWatcher, in an article by John Gibbons on August 10th, entitled Beware of Shiny Objects, Gibbons states the following:
- This past Friday, the Bureau of Labor Statistics reported that 117,000 new jobs were added to the economy in July, seemingly reversing the jobs slump that we’ve seen since early in the spring.
- On Tuesday, Bloomberg News reported that more than two million people actually voluntarily quit their jobs in order to accept better ones during the month of May. And, according to the Department of Labor, this is a 35% increase over the lowest level of voluntary resignations in this recession posted back in January, 2010. In other words, while unemployment rates might still be high, there are more and more opportunities for talented people to advance – by leaving their jobs.
At first glance, this sounds promising for the unemployed and for those whose circumstances require them to move. However, for the percentage of people voluntarily leaving a company due to discord, disengagement, management conflicts and the need for more money, their gain is your loss.
At TNS, we believe in a systematic approach that will get you to the absolute core of these problem trends and with the help of our expert staff, we will assist you by creating a uniquely tailored survey specific to your company needs, and analyze the data in order to create Action Plans and Best Practices.
Administering employee surveys, whether a “sampling” or a “census,” is not only for employees leaving a company but for a variety of reasons related to the working environment. One of our most popular white papers is “Sampling Versus Census; A Comparative Analysis,” which goes into greater details and offers advantages and disadvantages for both types of surveys. In the end, however, no matter which type you use, administering a survey – like taking a pulse – can prevent and even cure whatever is ailing your company.