The expense of losing an employee is more than the cost of bringing one on board, yet companies continually let good workers slip through their hands. The reasons why employees leave can vary, but one thing is for sure, employers don’t hold all the cards, even in a tough job market.
“Companies can’t look at employees as expendable commodities,” says Pat Sweeney, human resources manager at Old Colony Hospice and Palliative Care. “There may be a high unemployment rate, but it’s not all skilled people. If you’re just looking at your bottom line, you want to make sure your employees feel valued.”
Turnover can be expensive. According to Salary.com, it costs a company from 120 percent to 150 percent of the person’s salary if they leave within three months. Not only do companies invest money and time orienting a new worker, there are also training, benefits and recruitment costs. So, it behooves a company to create an environment where employees want to stay.