Turnover – The Ants are Fleeing the Colony

“Why is everybody leaving?” he said as he stomped into the office. “In the last four weeks we’ve lost two of our best middle managers and I just heard through the rumor mill we are going to lose two more!” Is this a familiar scene?

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People don’t leave jobs, they leave people. The costs of a bad hire have typically been calculated by valuing the loss of training dollars, severance packages and the investment in the search for a replacement. But what if the “bad apple” you hired doesn’t get fired? What if they don’t quit? What if they STAY in the position?

Maybe your high turnover rate has nothing to do with your culture, your pay/reward structure or your project management and workload. Have you examined your staff? Perhaps someone you hired has QUIT without quitting. Their poor behavior and decision making can cause other GOOD employees to leave the company.

What is the real cost of a bad hire? It may be more than you realize.

Let’s say that as a result of a bad manager, a mid-level high performing executive leaves your team every year. If their yearly salary is $100,000 fully loaded, what does it cost to replace them? Studies estimate that the monetary cost of replacing an executive can be 200% of their annual salary. That means that in addition to the wage you are paying the Bad Apple, you are paying approximately $200,000 a year.

Even if you don’t agree with the numbers, you get the idea. The bad apples can be hard to see. A jobfit hiring assessment can help you choose and develop your employees wisely. A small investment today can result in a high return of a satisfied, engaged, committed and long term work force. What is that worth? Priceless.

Harrison Assessments offers a host of talent management solutions that can help you find the right hire or develop your talent within.

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