This week's Tuesday Quick Thought is about employee turnover.
SHRM reports that a single bad hire can cost up to 5 times the position’s salary. HBR states that 80% of turnover is due to bad hiring decisions. Do you know the costs of your bad hires?
Well here is a little exercise to help you figure it out. Enter the appropriate numbers in the categories below and, when finished, add them together to get your grand total.
Job Advertisements
Number of job ads placed =
Price per ad =
Interview Cost
Total combined hours spent interviewing =
Average annual salaries of hiring team =
Training Cost
Total combined hours spent training new employees =
Annual salary of new position =
Loss of Productivity
Total combined hours of productivity lost =
Average annual salaries of affected employee(s) =
Grand Total =
Most companies have a hiring process so complicated that it's impossible to find a great fit. This broken process leads to hiring decisions based on biases and gut feelings rather than hiring the whole person. And this leads to higher levels of turnover and cost.
We're experts at helping our clients hire better and reduce turnover. Connect with us today to start saving money.