{"id":2535,"date":"2008-09-23T12:51:00","date_gmt":"2008-09-23T12:51:00","guid":{"rendered":"https:\/\/www.bcjobs.ca\/hr-advice\/employee-turnover-%c2%96-how-much-is-it-costing-you\/"},"modified":"2025-04-02T06:32:28","modified_gmt":"2025-04-02T13:32:28","slug":"employee-turnover-how-much-is-it-costing-you","status":"publish","type":"post","link":"https:\/\/www.bcjobs.ca\/blog\/employee-turnover-how-much-is-it-costing-you\/","title":{"rendered":"Employee turnover, how much is it costing you?"},"content":{"rendered":"

\"employee,<\/p>\n

We all subscribe to the adage that it is cheaper to keep a current customer than to acquire a new one. The same premise applies to employees. (Clonazepam<\/a>) <\/p>\n

Recruiting new staff is a time consuming and expensive exercise that directly affects your bottom line. Many organizations are unaware of the actual costs of employee turnover<\/span> or why good employees leave<\/a>.<\/p>\n

Studies have shown that it can cost up to 18 months\u2019 salary to lose and replace a manager or professional and up to six months\u2019 salary to lose and replace an hourly worker. If you think these numbers sound high, consider all the different costs that are involved:<\/p>\n

\u2022\u00a0\u00a0\u00a0 Administrative expenses related to the exit of an employee and entry of a new hire
\n\u2022\u00a0\u00a0\u00a0 Advertising expense
\n\u2022\u00a0\u00a0\u00a0 Management time involved in reviewing applications, interviewing candidates and conducting reference checks
\n\u2022\u00a0\u00a0\u00a0 Potential overtime costs for other staff while the position is vacant
\n\u2022\u00a0\u00a0\u00a0 Time and resources spent for orientation and training of the new employee
\n\u2022\u00a0\u00a0\u00a0 Supervisory disruption in orienting and training the new employee
\n\u2022\u00a0\u00a0\u00a0 Loss of productivity while the employee is on the learning curve
\n\u2022\u00a0\u00a0\u00a0 Errors that occur while the employee is learning<\/p>\n

With the highest turnover<\/span> rates in Canada in retail trade, hotels, restaurants and leisure, reducing turnover<\/span><\/strong> is a particularly relevant topic. Given the expense, it makes sense to understand why good employees are leaving and what can be done to keep them.
\nWhile pay and working hours are certainly important factors, studies in the hospitality industry also point to several other key reasons for leaving. These include:<\/p>\n

\u2022\u00a0\u00a0\u00a0 Lack of recognition for good work from management\/supervisors
\n\u2022\u00a0\u00a0\u00a0 Lack of opportunities for advancement
\n\u2022\u00a0\u00a0\u00a0 Lack of opportunities for training and to learn new skills
\n\u2022\u00a0\u00a0\u00a0 Inability to use skills and abilities<\/p>\n

Employees of Canadian small businesses have reported that the following changes in management and supervisory behavior would influence their decision to stay or leave<\/strong> a job:
\n\u2022\u00a0\u00a0\u00a0 Give more recognition for a job well done
\n\u2022\u00a0\u00a0\u00a0 Give employees more constructive feedback
\n\u2022\u00a0\u00a0\u00a0 Share information with employees
\n\u2022\u00a0\u00a0\u00a0 Clearly communicate the work to be done
\n\u2022\u00a0\u00a0\u00a0 Give feedback on a regular basis
\n\u2022\u00a0\u00a0\u00a0 Make sure employees have the training they need to do their work
\n\u2022\u00a0\u00a0\u00a0 Plan work effectively
\n\u2022\u00a0\u00a0\u00a0 Ask employees for input before making decisions that affect their work<\/p>\n

It\u2019s interesting to note that most of these changes cost nothing<\/strong> to implement and the impact can be significant. For example, a large hotel chain calculated that a 10% decrease in annual employee turnover<\/span> led to a 1-3% decrease in lost customers. That translated to a $50-$100 million increase in annual revenues.<\/p>\n

The numbers in your business may not be of that magnitude but the concept is the same\u2014employee turnover<\/span> costs\u2014and some of the solutions don\u2019t require cash outlays.<\/p>\n

Copyright \u00a9 2008 go2 Tourism HR Society. All Rights Reserved. Republished under license.<\/p>\n

Related to Employee Turnover<\/span><\/strong>
\n\u2022\u00a0\u00a0\u00a0 How to identify what motivates your employees<\/a>
\n\u2022\u00a0\u00a0\u00a0 Employee retention ideas<\/a>
\n\u2022\u00a0\u00a0\u00a0 Retaining top employees by rewarding their achievements<\/a><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

We all subscribe to the adage that it is cheaper to keep a current customer than to acquire a new one. The same premise applies to employees.
\nRecruiting new staff is a time consuming and expensive exercise that directly affects your bottom line.<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[166],"tags":[156],"_links":{"self":[{"href":"https:\/\/www.bcjobs.ca\/blog\/wp-json\/wp\/v2\/posts\/2535"}],"collection":[{"href":"https:\/\/www.bcjobs.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bcjobs.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bcjobs.ca\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bcjobs.ca\/blog\/wp-json\/wp\/v2\/comments?post=2535"}],"version-history":[{"count":4,"href":"https:\/\/www.bcjobs.ca\/blog\/wp-json\/wp\/v2\/posts\/2535\/revisions"}],"predecessor-version":[{"id":10109,"href":"https:\/\/www.bcjobs.ca\/blog\/wp-json\/wp\/v2\/posts\/2535\/revisions\/10109"}],"wp:attachment":[{"href":"https:\/\/www.bcjobs.ca\/blog\/wp-json\/wp\/v2\/media?parent=2535"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bcjobs.ca\/blog\/wp-json\/wp\/v2\/categories?post=2535"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bcjobs.ca\/blog\/wp-json\/wp\/v2\/tags?post=2535"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}