HR Focus
June, 1997, pgs 15-16

Reducing Costly Employee Turnover

DIRECT COSTS

• Marketing efforts to attract applicants.

• Actual hiring costs (including an expanded HR staff)

• Increased processing costs.

• More orientation training.

• Overtime work required to carry the load of the departed employees.

• Lost production due to slower new employees.

• Lost production due to increased accidents and equipment unfamiliarity.

• Executive time participating in meetings about reduced turnover.

INDIRECT COSTS

• Lost customers due to turnover.

• Inferior quality or service.

• Low employee morale.

• Your growing reputation for high turnover.

• Stress suffered by managerial and supervisory staff.

• Promoting and maintaining corporate culture.

• Teambuilding efforts.

• Inefficiency due to ignorance of systems and procedures.