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CBAFact SheetOver 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 CostsAll modules lead to one major cost that a SME faces - Turnover Costs

Direct: RecruitmentTraining And DevelopmentIndirect:Compensation And BenefitsPerformance Management Organizational DevelopmentAssumption SheetAverage employee monthly pay: 350?Hourly Rate: 8 Total hours: 40Number of Employees: 75

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

Compensation and BenefitsStreamlining the comp and ben system helps:

Uniform PolicyJob satisfactionMotivationPeace of MindIncreases self-confidenceEquity of compensationReward good work

Low AbsenteeismAvoid overpayingLow TurnoverPerformance Management14.9% lower turnover rates for companies who implement regular feedback.

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

Low Turnover

Cost of ImplementationFactors:Consultant rate: 4500/hourTime: 9 hours/week * 4 weeks = 36 hours

BENEFITSMinimization of turnover in turn minimization of turnover costs200% ROI in from of cost cutting