Hiring good employees takes time, energy and money. Replacing good employees is even more expensive. To calculate employee turnover cost use 50% to 200% of an employee's annual salary.
Time is spent placing ads, going through resumes, and calling references. Energy is expended filling the vacancy yourself or paying overtime to have someone else do it. Money gushes from the vacant position like an uncapped water hydrant. Consider the money spent on advertising the opening. Then the cost of you doing job filling activities: reviewing resumes, contacting potential candidates, and so on. The time and money expended here does not improve your bottom line!
Spend the time, energy and money keeping your people.
Did I hear you say the employee was not a good hire? That's the subject of my next post.
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