Keeping employees is an important aspect of a good organization. Employee turnover can have a significant impact on your organization, especially if you are losing your top performers. You can lose people in two ways:
There are direct and indirect costs associated with each type of turnover, but dysfunctional turnover can have a bigger impact on your company. There are costs incurred not only with finding a replacement, but also the impact of turnover on morale, culture, and how it affects your customers.
Losing top performers can be expensive. Here are the direct and indirect costs of dysfunctional turnover:
The direct costs of employee turnover are easier to account for. You can figure out a dollar value for the amount of time and resources you use to replace an exiting employee. Here are the main direct costs:
The indirect costs of losing an employee are more challenging to track, but they can have just as much of an impact on your company. The top indirect costs are:
Read More About Employee Turnover
What Is the Financial Cost of Employee Turnover?
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Ross Campbell is a Partner and Practice Lead, Financial Services & Insurance with IQ PARTNERS. Celebrating over 10 years of management consulting experience in executive search, recruitment, and training in Canadian financial services and insurance companies, Ross thrives on the belief that business can be done significantly better by investing in the right people.