Is This Cost Effective?
The great majority of the time it is not only very cost effective, but it also makes a difference in the work environment.
What is the cost of turnover or a poor employee???? A large number of companies – big and small – don’t have a dollar analysis on the cost of replacing an employee.
Here are some of the items needed to be considered in calculating the cost:
There is a huge range of estimated cost. For upper level management position it can range from ½ of the annual salary cost to 14 times the annual package. Whew!
It is rare to have it be less than 18% of the annual compensation when above considerations are included. Based on research from 2004, Employment Policy Foundation found it to be $13,355 per employee.
A decent rule of thumb could be (according to the research)
You can understand why lower turnover can make a real difference in the profits.
If The Job Could Talk Who Would The Job Hire? Call 512.278.1200
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