By Ashley Lipman
Before making a hire, it is essential for hiring managers and human resources to crunch some numbers and understand the costs associated. Some costs will be fixed based on your business needs; others will be variable depending on who you choose to hire.
Employee turnover and replacement can cost the company upwards of nine months of the position’s salary. That means if Before making an offer, here are some numbers to calculate to better understand the expenses associated with the onboarding process.
If a position is unfilled, someone has to be covering the job in the meantime. That means that the individual is unable to focus all of their time on their usual task, which reduces productivity in both tasks. Reduced productivity can mean falling behind on work and making costly mistakes, due to a lack of focus.
Conversely, the longer it goes on, the higher the risk that the cover person will become burnt out and need to take time off, increasing the issue. Then you get reduced engagement from the other employees, who fixate of the negativity associated with turnover. This is the main reason you want to ensure you fill the position as quickly as possible and have an accurate measurement of Time being dedicated to each job. [Read more…]