CBA

Fact Sheet
Over 50 % of people recruited in to an organization will
leave within 2 years.
One in four of new hires will leave within 6 months.
Nearly 70% of organizations report that staff turnover has
a negative financial impact due to the cost high turnover.
Nearly 70 % of organizations report having difficulties in
replacing staff.
Approximately 50% of organizations experience regular
problems with employee retention.

Employee Turnover Costs

All modules lead to one major cost that a SME faces - Turnover
Costs
Direct:
Recruitment
Training And Development

Indirect:
Compensation And Benefits
Performance Management
Organizational Development

Assumption Sheet
Average employee monthly pay: 350?
Hourly Rate: 8
Total hours: 40
Number of Employees: 75

Recruitment and Selection

The Society Of Human Resource Management estimated
that an $8/ hour employee costs a company $3,500, in
turnover expenses, including but not limited to cost of
exit, recruiting, interviewing, hiring, training and initial
reduced productivity.
Monthly $8*8 hours*5 days*4 weeks = 1280
Turnover cost: 2.8 times

An estimate shows the cost of turnover for entry-level

employees as 30-50% of their annual salary, 150% for
mid-level employees, and up to 400% for specialized,
high-level employees.

Training And Development

Training employees reinforces their sense of value
(Wingfield, 2009).
Once you have good staff it pays to make sure they stay
(Main, 2008).

Compensation and Benefits

Streamlining the comp and ben
system helps:

Uniform Policy
Job satisfaction
Motivation
Peace of Mind
Increases self-confidence
Equity of compensation
Reward good work

Low
Absenteeism
Avoid
overpaying
Low Turnover

Performance Management
14.9% lower turnover rates for companies who
implement regular feedback.

Organizational Development
Culture
Engagement : Improved team performance, quality relation with manager.
Performance: Impact on overall team output, high level of engagement leads to
high performance level
Retention: Strong bonds form within the organization which leads to high
retention cost hence less cost on hiring new employees.

Continuous Improvement
Increased Communication
Employee Development

Low Turnover

Cost of Implementation
Factors:
Consultant rate: 4500/hour
Time: 9 hours/week * 4 weeks = 36 hours

BENEFITS
Minimization of turnover in turn minimization of
turnover costs
200% ROI in from of cost cutting