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There are 10 sections to your personal cost of employee turnover report that breaks down the data you have provided to give you an idea of costs in each area:
This section reviews some of the key information that you have provided about your organisation and helps you to compare your overall level of employee turnover to the average.
Number Of Employees = current employees
Approximate Number Of Leavers = leavers over 12 months
Number Of Headcount Growth Employees = new employees
The calculated number of leavers is an important consideration and you should track this data over the next 12 months and also review if the number of leavers is voluntary or involuntary. This, perhaps combined with exit interviews, will help you to understand some of the reasons behind your employee turnover.
This section helps you to understand some of the (often) hidden costs about your employees and their salaries. We've inculded a calculation based on the average salary to help you to determine the additional costs to salary that employee benefits add, as well as monthly and daily costs of each employee in your business (expressed as an average).
Average Salary = £/$
Benefits Cost = £/$ (This covers things like bonuses, cars, fuel allowance, benefits package, pension contributions, etc.)
Monthly Salary Cost = £/$
Daily Salary Cost = £/$
This section looks at some of the costs that arise when an employee actually leaves the business. The main focus is on the cost of covering the vacancy until it is filled again. However, you may find that there are also additional costs that may need to be considered such as severance fees, exit interviews, etc.
Daily Cost To Cover Vacant Slot (Temp Fees) = £/$
Number of Days to Cover Vacant Slot = Days
Total Cost To Cover Vacant Slot = £/$
If no temporary cover is put in place, then you've lost days of productivity, so at least £/$ based on the previous employees average salary.
Actual hiring costs are the costs most likely to be visibly linked to costs of employee turnover. Below we have calculated the average cost to hire for a vacancy.
HR or Hiring Manager Salary = £/$
Hourly Rate of HR or Hiring Manager = £/$
Time Spent Screening = Hours
Time Spent Interviewing = Hours
Total Hours used To Fill One Vacant Slot = Hours
Cost Of Recruitment = £/$
Agency Fees @ % = £/$
Cost To Hire Per Vacancy = £/$
Less obvious sometimes are the costs involved in bringing a new employee in to the business and getting them trained to the required standard. Each job role and organisation will have a different requirements, but it is important to try and identify an average.
Trainer or Managers Salary = £/$
Daily Rate For Trainer = £/$
Total Training Days = Days
Total Training Cost of New Hire = £/$ (This number could be lower depending upon how many new employees undertake training at the same time)
These costs are often overlooked when looking at the costs of employee turnover. Again, different employees, job roles and organisations will have different learning curves that impact on productivity. However, understanding that it will take some time for a new employee to get up to speed is important and does carry an associated cost.
Number of Days Probationary = Days (Typically it can take as long as 24 weeks / 6 months to get a new employee up to the expected productivity as reported by Unum)
Productivity Loss = % Effective In The Role
New Hire Productivity Loss = £/$
Having taken all of the above factors and costs into consideration, here is our summary of what employee turnover costs your organisation each year.
Potential Cost Of A Bad Hire = £/$ (Every time there is a hiring mistake your business is likely to incur this cost)
As a % of Salary = % (This figure represents the cost of a bad hire as a percentage of the average salary and gives you a useful indication as to the importance of good hiring decisions)
Your Current Employee Turnover Cost = £/$ (This is the potential annual cost of your employee turnover)
Your Risk On New Hires This Year = £/$ (If your organisation is looking at expansion over the course of the next year, then this figure outlines the potential cost of risks in recruiting these new employees)
Based on the information you have provided, here is a comparison of how your employee tunover compares to our knowledge of industry averages:
Employee Turnover Rate =
Potential Cost Of A Bad Hire = £/$
To assist you in building a business case for addressing employee turnover, we have calculated some scenerios to help illustrate the possible savings and benefits to your organisation by implementing a solution to this challenge.
– If using PeopleClues assessments in your recruitment process could save you just one bad hire in a 12 month period, then you could potentially save £/$
– If using PeopleClues assessments in your recruitment process could reduce your employee turnover costs by 20%, then you could potentially save £/$ (Typically our clients are able to reduce employee turnover costs by up to 40% in the first year).
The table below shows the savings we could help you make with just a small reduction in your employee turnover costs:
|Your Current Employee Turnover Rate||Your Current Total Cost Of Turnover||Cost Saving|
|Employee Turnover Reduction||Total Cost Of Turnover||Cost Saving|
Clearly you may need some time to consider these results, share with colleagues and possibly use the calculator again and refine the results. We can support you in a number of ways and would be delighted to talk with you to really understand the challenges you face. Click here to speak with an expert.
Alternatively, you may be ready to change your recruitment processes and use PeopleClues to reduce staff turnover and increase organisationl performance. PeopleClues will help you:
PeopleClues offers a simple and affordable way to help you start addressing employee turnover challenges. It typically takes less than 15 minutes to get a account set up and to be able to start assessing candidates and thereby reducing your employee turnover costs straight away.
To find out how much implementing PeopleClues will cost, why not request a quote and we will provide you with a full price proposal without obligation.
Furthermore, if you do decide to implement PeopleClues assessments, you'll also be protected by our 30 day money back guarantee.
Simply click here to learn more on our Employee Turnover microsite, or click the button below.