The Cost of Employee Turnover
Understandng the financial (and other) effects of establishing more proficient hiring practices will provide you more reasons to spend time and effort on this vital growth subject.
Hiring the wrong person for the wrong job can be a financial disaster.
- Many employees do not have all the skills and attributes to do their jobs well.
- Most hiring and promotion decisions are made in haste – during the first 5 minutes of an interview.
- 80% of employee turnover is avoidable.
- Bad hiring decisions that result in turnover cost the employer up to twice the person’s annual salary. For example: Salary $50,000 -- Cost of a failed hire, up to $100,000.
Compare that to the average IHS cost of $200 +/- per applicant employee assessed.
The Hiring Challenge is to hire the best employees you possibly can, the first time.
You need a systematic approach, superior tools and the determination to meet the challenge.