We know how much it costs us to produce widgets; do we track how much it costs us to produce employees? This is an ongoing compilation on various employee related issues. Feel free to collaborate….!
Why is it better to retain than hire new?
- Hidden costs: http://www.profitableemployeesolutions.com/how-to-calculate-your-employee-turnover-rate-and-cost.html
- Time to break-even productivity (6.2mths): http://www.investopedia.com/financial-edge/0711/the-cost-of-hiring-a-new-employee.aspx
- Studies for $8/hr employee ($3,500): http://www.sashacorp.com/turnframe.html
- Studies across various wage rates (10% to 30% annual salary): http://www.americanprogress.org/issues/labor/report/2012/11/16/44464/there-are-significant-business-costs-to-replacing-employees/
- Costs in your company? http://us.drakeintl.com/hr-tools/cost-of-turnover-calculator.aspx