What are the cost of turning?

Turnover costs relate to the costs associated with the replacement of an employee leaving the company or organization. Employee turnover costs can be significant - it includes expenses for recruitment and training as well as the loss of money invested in the outgoing employee. The overall functioning of the organization can also exist intangible costs when the employee is lost.

Recent studies show that employee turnover can be very expensive. Employers began to look carefully at how the turnover affects them economically and in terms of overall functioning. Knowledge of the cost of losing and replacing employees can help employers understand the value of their investment in their maintenance.

There are many different costs when an employee leaves her employment, either voluntarily or by termination. Forms of insurance, wages and pensions can be processed administratively. Personnel records must be updated to include the reasons for the employee's departure. Depending on the nature of theBusked companies or organizations could be very detailed. If an employee is a member of the Union, hearing may be questioned when departure is involuntary.

Turnover costs may also include expenses to the employer when paying compensation for unemployment. In the US, the amount and duration of unemployment reimbursement is determined by each state. In general, it is a percentage of wages paid for a fixed period, sometimes up to a year or more. If the outgoing employee has difficulty finding appropriate work, the compensation period may be extended. If the employer attacks advantages, they may listen to expenditure on legal representation and participation at the hearing before the judge of the state administrative law.

If the employee leaves voluntarily, large expenses can still be included. Loss of time and money invested in initial recruitment, hiring and training of employees. Intangible costs such as experienceObtained from work, the ability of the person's leadership and the overall contribution to the organization may also be taken into account the cost of turnover.

Exchange costs are additional costs of loss of employees. Depending on the level of experience with new persecution, the costs of compensation may be more than the cost of losing the former employee. For other employees, there may be an increased workload that affects their functioning until the free space is occupied. Even after finding a replacement, productivity may be lost because things are beyond synchronization or loss of morality.

Studies suggest that investment in maintaining employees is more cost -effective than the cost of turnover. Public and privacy employers can consider it more advantageous to invest in Employee support and development of skills. Organizational leaders should monitor and record the cost of turnover and re -evaluate their policies when the percentage of turnover exceeds the national average for a given field or enterprise. By calculating the cost ofTurnover can determine how much to invest in its prevention.