Most HR professionals would agree that turnover is a source of stress. Losing an employee can feel like losing an investment, and replacing that person has its own costs—advertising, onboarding, training, and coverage to name a few. But we also know that turnover is a manageable cost of doing business, and sometimes even welcome. In short, turnover is a metric to take seriously, but also realistically.
According to the U.S. Bureau of Labor Statistics, the unemployment rate in July 2009 was 9.4% compared to 5.8% in July last year. In turn, many employers have observed from their growing stacks of resumes, a wider availability of experienced workers as interested job applicants. As the employer, to effectively determine which resumes will lead you toward the top job candidates, keep in mind the following helpful steps:
Employee turnover is expensive—more so than you might think. According to a recent survey by the Society for Human Resource Management, the average cost-per-hire is $4,129. However, turnover costs can vary depending on the length of time it takes to fill the role, the importance of the position to the employer, and the employer’s industry. Some costs are easily calculable, such as those of recruiting, hiring, and onboarding. Other costs can be difficult to measure, such as the impact of a termination on employee engagement. Easily measurable or not, all these costs hurt your bottom line.