Employee Turnover Cost: Calculation & Reduction

Turnover Cost is one of the major hidden HR cost. Lacking of Employee retention is one of the Key elements for turnover. This workshop will help Professionals to make them able to calculate the Turnover Cost and to draw the impact as well as some strategies for reducing Turnover Cost

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Introduction:

Turnover Cost is one of the major hidden HR cost. Lacking of Employee retention is one of the Key elements for turnover. During the last decade, employee retention has become a serious and perplexing problem for all types of organization. Managing retention and keeping the turnover rate below target and industry norms is one of the most challenging issues facing businesses. From all indications, the issue will compound in the future, even as economic conditions change.

Employee turnover continues to be one of the most unappreciated and undervalued issues facing business leaders. This stems from several important assumptions and conclusions about turnover:

All stakeholders involved in the issue, including Functional Head, Human Resource managers, underestimate the true cost of employee turnover.

The causes of turnover are not adequately identified in most organizations.

The solutions to reduce turnover are sometimes mismatched with the cause of turnover and do not generate the desired results.

Many of the preventive measures for turnover are either overkill or they often miss the mark altogether.

This workshop will help the participants to address the above issues and to introduce some probable solutions for the betterment of the organization.

Objective/ Benefit: After successful completion of the program participants will be able to:

Have clear concept about Employee Turnover & its impact
Calculate fully loaded cost for Turnover
Take necessary steps to reduce cost
Reduce turnover rate
Increase retention rate

Major areas to be covered:

Module-1: Employee Turnover: the Essentials

What is Employee Turnover?
Types of Employee Turnover
Avoidable versus unavoidable turnover
Dysfunctional versus functional turnover

Module-2: Employee Turnover: Measures and Causes

Turnover Measures
Possible Positive Consequences of Turnover
Monitoring Turnover and Retention data
Causes of turnover
External drivers of the retention crisis
Internal drivers

Module-3: Employee Turnover Cost: Concept, Types, Approach

What is the cost of turnover?
Turnover Cost Benchmarking
Iceberg Model of Turnover
Types of Cost
Approach of Calculation
Factors that affect Costs
Impact of Tenure on cost calculation

Module-4: Employee Turnover Cost: Calculation & Management

Calculation of Costs
- Costs Due to a Person Leaving / Departure
- Recruitment Costs/ Replacement
- Training Costs/ Orientation
- Lost Productivity Costs/ Consequence of Turnover
- Lost Sales Costs [for sales people]
Predictors of Voluntary Turnover
Strategy for Reduction of Turnover Cost
Reference of Turnover Cost Benchmark
DO’s & Don’ts for Managing Turnover