Source: Scott Cheney, PAROS Group, 2006
Myths about turnover abound; some say it is inevitable and there is little that can be done to stop it. Some argue that turnover is a serious symptom of deeper organizational problems. Still others imply that turnover is good since an organization needs to do periodic housecleaning in order to keep things neat and tidy.
In fact, turnover is an indication that something is wrong. At a minimum, the organization and the employee have been mismatched and often the only thing the organization has to show for it is another costly statistic.
In this era of continuing — and increasing — labor shortages, organizations cannot afford the tedious and expensive process of recruiting applicants, only to have them leave in discontent.
But just how costly is turnover? PAROS Group has devised this “cost-of-turnover” worksheet to determine how turnover affects an organization’s bottom line. You may be surprised.