Direct Costs of Employee Turnover:
- Hiring of temps • Paying overtime
- Cost of benefits to departing employee • Administrative costs associated
- Human resources department time required to administer separation
- Managers time • Redistribution of workers responsibilities • Training
- Expenses of Training defecting employee (i.e. certification, education, etc.)
- Recruiting/Selecting replacement employee
(including: developing job description, advertising, reviewing resumes, interviewing, screening tests, background investigations, etc.)
- Training and Orientation costs of the replacement employee
(including: time of managers and co-workers, formal trainers, materials, lost productivity of those who must use work time with new employee.)
- Administrative time to bring in new hire (including, HR, IT, Benefits, etc.)
- New hires generally have reduced productivity during training period
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