What are your turnover and recruitment costs?

A big part of managing people is knowing what you’re up against. Most small businesses experience high turnover volumes, but often the SB owner has no idea what effect that’s having on profits. I’ve had many business owners, small and large, tell me that turnover is insignificant.

One CEO of a 1000 employee company told me his HR department said turnover was costing $2000 per person. He also told me turnover was at 100% at that time. Well of course I did a quick calculation and said, “Wow! So your turnover is costing you two million dollars a year!”

Hi jaw dropped! Obviously he had never put the two numbers together! He assured me it couldn’t possibly be costing that much!

His reaction is not unusual. I was part of the management team at another company where we were experiencing close to 100% turnover, too. Our leader would not accept that turnover was costing us nearly as much as I thought it was.

The problem is very few people know how to put the numbers together.

Well I’ve had a tool developed that will walk you through the process. I promise it really won’t be painful to go through, but you may get a shock at the final numbers.

This tool is a comprehensive one that should give you a pretty accurate picture of how much damage turnover is doing to your company. It’s also worth noting that this calculator includes recruitment costs to replace the outgoing employees.

Calculate your recruitment and turnover costs here.

Now, Let’s Look at Performance Costs

If You havent’ already done so, please watch the Employee Performance video.

In that video, you learned that Super Star Performers produce 19% more than Average Producers and 38% more than Underperformers.

Here’s something I didn’t tell you…

Those statistics are just for “unskilled” or “semi-skilled” workers. The figures are much worse when we look at “skilled” workers and worse yet when we look at Management or Professional workers…

To recap, in the Unskilled/Semi-skilled category:

• “Super Star” workers produce 19% more than “Average” workers
• “Average” workers produce 19% more than “Underperformers”
• “Super Star” workers produce 38% more than “Underperformers”

Now, let’s look at the “Skilled” worker category: 

• Skilled “Super Star” workers produce 32% more than “Average” workers
• Skilled “Average” workers produced 32% more than “Underperformers”
• Skilled “Super Star” workers produce 64% more than “Underperformers”

Shocking? Wait until you see the differences in this category:

Among Managers and Professionals. . .

• “Super Star” workers produce 48% more than “Average” workers
• “Average” workers produce 48% more than “Underperformers”
• “Super Star” workers produce 96% more than “Underperformers”

Now, here’s your chance to calculate your own numbers. . .

(Your calculations and the numbers you input will not be stored or viewed by anyone else. They are for your information and use only.)