While the majority of the impact which turnover has on your business is difficult to measure, some negative factors can be quantified. Consider these costs when estimating the monetary loss turnover accounts for.
Employee costs during application phase
- Advertise to fill position
- Manager reviews various applications instead of being on the floor
- Manager conducts interviews instead of being on the floor
- Drug screens, educational/criminal background checks, and other reference checks
- Various candidate pre-employment skill, aptitude, and value assessment tests
Employee costs during on-boarding phase
- Trainee wages
- Trainer wages
- External training programs
- Certifications
- Mistakes made while learning
Employee costs while leaving
- Unmet deadlines or goals in employee’s absence
- Lost productivity due to employee’s absence
- Potential to lose other employees
- Lost departmental productivity
- Cost to retain lost employee’s customers
Replacement phase
- Advertise to fill position
- Manager reviews various applications instead of being on the floor
- Manager conducts interviews instead of being on the floor
- Drug screens, educational/criminal background checks, and other reference checks
- Various candidate pre-employment skill, aptitude, and value assessment tests
Also consider the cost of managers dealing with turnover instead of dealing with customers.
The best way to reduce turnover costs is to … reduce turnover. TimeForge can help you reduce your turnover (as well as reduce labor costs, often over 3% within the first week of implementing TimeForge) by providing staff and management a superior means of communication, keeping everyone “in the know” at all times. When it comes to staff turnover, TimeForge reduces it by:
- Ensuring that employees are never scheduled at times they are unavailable by allowing staff to fill out their own availability (which can be overridden by management) and automatic enforcement of these availability requests.
- Making online shift swaps, pickups, time off requests and most non-face-to-face management tasks simple and fast. Managers are kept in the loop as well!
- Online, text message, and Facebook notifications of work schedules and upcoming shift reminders. TimeForge is available to your employees in formats that they are familiar with and frequently use.
- And many other benefits to managers and staff … keeping employee turnover down at your business!
TimeForge Labor Management can improve your profits by 3-5%, often paying for itself in the first week alone, offering instant ROI for your business! Sign up for your free trial of our employee scheduling software today, or take a look at our other labor management products.
Still not convinced? Read what other TimeForge users are saying!
