Reduce Staff Turnover
Keeping staff longer by reducing voluntary and involuntary staff turnover is a key performance indicator for many organisations.
Staff turnover is costly and even small improvements in retention can significantly improve profitability. Broadly speaking, the direct measurable costs of staff turnover consist of:
- Separation costs such as severance pay, management costs and possible litigation for involuntary separation
- Replacement costs such as sourcing expenses, HR costs associated with screening and assessing candidates, manager time spent interviewing candidates, travel and relocation expenses, signing bonuses, induction and training.
Employee turnover also impacts organisations indirectly in ways that are more difficult to quantify, such as lower productivity of departing employees, their colleagues, managers and replacements, and general downtime associated with recruiting and inducting new personnel.
Taking into account both direct and indirect costs, the total cost of replacing one employee is estimated to be 150% of their annual salary (Saratoga Institute and Hewitt Associates). This clearly illustrates the financial consequences of employee turnover. For example, for a company with only 1,000 employees, an average salary of $50,000 and a turnover rate of 10%, the annual cost of staff turnover is $5 million. Consequently, reducing staff turnover by only 0.5% would deliver a savings of $375,000 dollars per year.
Onetest helps organisations to reduce voluntary and involuntary staff turnover by recruiting people that fit well with the role and the organisation. That is, helping organisations to hire people who:
Such candidates will be more satisfied and committed and, as a result, are likely to perform better and stay longer.
Onetest also assists companies to reduce staff turnover by measuring employee engagement
and the perceptions of exiting employees
, and conducting 360 performance appraisals
using standardised tools, all of which which aids in the development of employee retention initiatives.
would recommend that other not-for-profit organisations do staff
perception surveys. It gives a really good picture of the culture of the
organisation as well as providing valuable insight into staff morale.
It also highlights any possible issues before they become a major
Chief Executive Officer
Royal Children’s Hospital Foundation
testimonials from Onetest clients.