It's always upsetting when an employee chooses to leave your team and in addition to the immediate loss, there are three key effects:
- More work for you and your team
- A loss of expertise in the team
- A loss of income for you and for the business
1. More work
Pushing more work on your plate or on your team has a direct effect on whether someone else will consider leaving. If you decide to take on extra responsibility, then it takes away from the amount of time you put in to crucial soft skill areas of team building. If your team picks up the extra work, then can feel burdened, unhappy and ready to look for a new position. Moreover, they know their ex-team member now has a more lucrative role.
2. Lost Expertise
Experts say it takes about 2 years to become full familiar with a new role and organization. This requires a considerable investment of your time and HR time to get the new person up to speed. This all costs money and which leads to point three.
3. Lost Revenue for you and the company
At a personal level, consider how losing a team member will affect your ability to hit quotas and bonuses. At an organizational level there will be an effect on customer service and satisfaction which can have long-term consequences.
Adding it all up
The form below allows you to determine how much money is lost when someone quits.
How do you increase employee retention?
Employees are not going to stay in a job because you pay them a good wage, they stay because they feel part of something meaningful. There are many other employers who have open positions and will pay them more, or offer a more prestigious title.
C-Link Consulting can help you avoid the disappointment of losing team members and the effects that has on your businesses profitability. If you want learn more about how to engage and excite your team, call 248-228-7184, or email email@example.com.
1. This does not include the time and cost it takes to advertise and interview. Neither does if factor in the impact on other employees and any overtime, production flow issues and missed deadlines
2. The average US job vacancy took 43 days to fill in September 2018: https://resources.workable.com/blog/recruiting-kpis. There was considerable variation depending on the position - from 33 days for customer service to 58 days for engineering.
3. Another source for calculating the cost of vacancies: https://drjohnsullivan.com/uncategorized/cost-of-vacancy-formulas-for-recruiting-and-retention-managers/