Advertisement

Minimize the Cost of Employee Turnover. Hire a Virtual Assistant.

Minimize the Cost of Employee Turnover. Hire a Virtual Assistant.
From Recruiter - March 6, 2017

There are many benefits to hiring an in-house employee, but cost isnttypically one of them. For small and midsize businesses, the costs associated with a full-time employee can be a deterrent to hiring, even when the current staffis stretched thin and business is growing.

Unfortunately, its evenmore damaging to a businesss bottom line to lose an employee.

The Cost of Employee Turnover: Experts Weigh In

Christina Merhar of Zane Benefitscites aSHMRstudy that found replacing a salaried employee costs 6-9 months worth of that employees salary on average. She also notes aCAP studythat found the average costs of replacing employees are:

16 percent of annual salary for high-turnover, low-paying jobs (earning under $30,000 a year). For example, the cost to replace a $10/hour retail employee would be $3,328.

20 percent of annual salary for mid-range positions (earning $30,000-50,000 a year). For example, the cost to replace a $40,000 manager would be $8,000.

Up to 213 percent of annual salary for highly educated executive positions. For example, the cost to replace a $100,000 CEO is $213,000.

Karlyn Borysenko of Zen Workplace states,When you consider all of the costs associated with employee turnoverincluding interviewing, hiring, training, reduced productivity, lost opportunity costs, etc.heres what it really costs an organization:

For entry-level employees, it costs between 30-50 percent of their annual salary to replace them.

For mid-level employees, it costs upwards of 150 percent of their annual salary to replace them.

For high-level or highly specialized employees, youre looking at 400 percent of their annual salary.

Obviously, it pays to hire well and retain better.



Advertisement

Continue reading at Recruiter »