Employee Turnover Cost: Calculation & Reduction

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.

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

Practice Exercise: There are 5 Practice Exercise in the material. Delegate needs to practice by self.

Assignment: There will be an assignment to be submitted via portal

Examination: There will be MCQ based Examination. Anytime anyone can attend exam