Venture Enterprises Ltd

Posts Tagged ‘Turnover’

The price you’ll really pay when an employee leaves could shock you!  Contrary to popular belief, when an employee leaves the job soon after he or she starts, it is not the price of another “Help Wanted” ad that is your biggest financial burden. In fact, that is one of the least expensive costs! 

Statistics show that when a person vacates a job within 3 months of hire, you and your company will end up paying — in dollars and cents — about what you would have paid that person in one year! A hefty price for poor planning? The answer is a resounding “YES”! 

With that in mind, think about your newest hire.  Think about all the time, effort and resources you put in to find this person.  What can you do to keep him/her from leaving to go work with your closest competitor?  

Think about the far-reaching effects of turnover: 

Overworked Staff:  While a departing employee’s days with you come to an end, his/her paperwork and ongoing tasks do not. It is often necessary to pay the remaining staff overtime to cover the workload in order to meet preset deadlines and satisfy the needs of busy clients.  If your staff are salaried you will not pay them additional dollars; however, your price will be the camaraderie lost among your employees as they become increasingly resentful of being overworked, pushed to their limits.   

Service:  Incalculable financial opportunities are lost by your company when your representative is no longer there to quickly quote prices for additional insurance products, deal with emergencies, answer questions, and resolve problems. Clients start to feel abandoned, when the face or voice they were just starting to feel comfortable with is replaced. The sense of relief and well being that many clients feel when dealing with someone familiar to them diminishes and takes time to be

Many companies are finding it increasingly difficult to retain employees. Turnover has becoming a serious problem in today’s corporate environment. The employment culture is changing as more employees are demanding more and more balance between work and personal/family life; it is not uncommon to see people changing jobs every few years.

Turnover costs for many businesses are very high, resulting in a huge impact in the financial aspect of an organization.

Turnover costs include:

Recruitment costs – Job position advertising

Training costs

Increase in workloads and overtime expenses before the replacement is ready to take on the responsibility of the job position

]]>

Now because the company is short on staff, productivity is reduced resulting in an overall reduction in profits and growth.

Now I hope you get a clear idea of how serious this can be!

This is why hiring the right people initially is extremely important! It is best of the candidate shares the same vision as the company and proposes a will to follow and grow with the company.

Another way to reduce employee turnover is to make the company employee-oriented, focusing on interactions between all levels in the organization – from workers, to supervisors, managers, and directors. If one can feel part of the company as a whole, trust and loyalty can be built up between employees. Does your company’s environment openly encourage communications and feedbacks from employees?

Attractive compensation packages also help to retain the employees. The top companies that have low employee turnover have attractive compensation packages such as health and dental benefits, RRSP packages and healthy work environment. Many companies offer vacations packages, and other freebies such as free

Upper Saddle River, NJ – February 23, 2009 -  Compensation Resources, Inc. is pleased to present the results of our 2009 Turnover Survey.  The purpose of this study was to obtain turnover statistics and trends, and also provide a comparison to the results reported in the 2006 Turnover Survey.  Data was compiled from survey questions that were developed by Compensation Resources, Inc. and distributed to companies in over 14 industrial classifications.  The survey sampled turnover data from 166 organizations, collected in October and November, 2008.

 Compensation Resources, Inc. has conducted this Turnover Survey every two (2) years, which provides a record of the voluntary and involuntary turnover of a cross section of industries, across the USA.  This year’s results are based on information as of September 2008, and show a significant increase in overall turnover, mostly due to layoffs and bankruptcies caused by the financial crisis and global recession.  Overall turnover registered over 23%, which does not include the huge number of forced terminations resulting from the mass layoffs impacting many companies since our data collection period. 

 Voluntary turnover overall remained generally stable since 2006.  Our experience has shown that many older employees have postponed their retirement as their investments and retirement packages dwindled in value.  In addition, many employees, who would otherwise consider a move to another company, were hesitant to move given the general feeling of uncertainty in the economy.  It seems as though employees took into consideration the old expression “the Devil I know is better than the Devil I don’t know”. 

 Given today’s economic environment, companies are most impacted by involuntary turnover as a result of downsizing, staff reductions, etc., that are necessary to ensure survival.  However, companies need to take

Every employer experiences turnover. But how do you determine if your attrition is “normal” or average, or if there is something more serious going on with the staff or work environment?

Turnover can be very costly to a practice. With each employee who leaves, much time and money go out the door with that person. Being short-staffed can be particularly challenging in a medical practice environment, because patients don’t stop getting sick or stop scheduling appointments just because your key staff member(s) quit today.                     

Sometimes turnover can even have a “snowball” effect – once one or two people leave, others will follow, and then you’re left scrambling to put the staff back together.

Below are a few ways you can assess and engage your staff to help prevent or reduce high turnover in your practice.

Review your hiring/firing history for at least the past year, or few years, if possible. To calculate a more precise turnover rate, there are numerous turnover calculators to help you determine turnover rate, such as this one at ExpressPros.com.

If your rate is much higher than 12-15%, there may be an issue. You probably don’t need to be seriously concerned unless your turnover rate is significantly higher, in the 25%-plus range.

Then you need to determine which turnover was due to external factors beyond your control, and which turnover was prompted by internal factors that you could control, prevent, or reduce.

]]>

If you are not sure why your people leave their jobs at your office, that’s one place to start – by asking detailed questions when people resign – and then read

   Frankly, I don’t believe in paying minimum wage.

 

   This doesn’t mean I don’t believe in a minimum wage which must be paid.

 

   It means I don’t believe in paying only minimum wage.

 

   Why? For two reasons:

 

   One, because in return for paying only minimum wage, you usually get minimum employees who are motivated to deliver minimum effort, which isn’t good for either one of you.

 

   I suggest that paying minimum wage typically sends employees this message on one level or another:

 

   “You and the work you do for us have so little value that we’re going to pay you as little as we can possibly get away with by law.”

 

   That’s not exactly a good premise on which to attract capable, hard-working employees with the intent of keeping them. And people often associate their self worth with the jobs they do, and what they pay.

 

   Yes, I realize every little increase costs businesses, especially small ones, plenty.  When I signed payroll checks for a small family business several years ago, I was amazed at the amounts we paid in taxes and FICA after small pay increases.

 

   Two, if you have employees making minimum wage, studies have shown they may leave for another employer for as little as a 5% increase in their hourly wage!

]]>

 

   Let’s do some math.

 

   The current federal minimum hourly wage for covered nonexempt employees is .25. A 5% increase amounts to just over 36 cents per hour, .40 per week, .92 per month, and 3.04 more in annual wages.

 

   Adding a 7.65% FICA cost of 8.43, the employer now pays ,311.47 more (3.04 plus 8.43).

 

   However, assuming this is a reasonably

Stop the Revolving Door of Employee Turnover: Assessment Tools Have Advanced so Companies Can Now Identify, Select, and Retain Top Performing Employees , How to Increase Turnover, http://www.prweb.com/releases/2005/01/prweb200787.htm, , The challenge and cost of turnover is one of the most discussed, most frustrating and most misunderstood problems businesses face. CEO’s have identified employee retention as one of their key challenges in 2005. Yet organizations continue to struggle. Why?

Upper Saddle River, N.J. – May 25, 2006 – Compensation Resources, Inc. has released the results of its 2006 Turnover Survey. The purpose of this study was to obtain turnover statistics and trends from a broad range of industries and company sizes. Data was collected in April and May 2006, and was compiled from survey questions that were developed by CRI and distributed to companies in over 12 industrial classifications, representing publicly-traded, privately-held, and not-for-profit organizations.

Results indicated that for the twelve-month period ending March 31, 2006, the average voluntary turnover rate was 14.3%. Overall, respondents indicated this rate has either increased (39%) or remained the same (36%) as compared to the prior 12-month period. Only 25% of participants indicated the voluntary turnover rate has decreased. Since the turnover study completed in 2004, results indicate that both voluntary turnover and overall turnover have slightly increased in 2006. Respondents within privately-held companies reported higher voluntary turnover rates than publicly-traded companies and not-for-profit organizations.

It is interesting to note that the survey identified a shift in the motivators noted by employees for leaving the organization. While better pay and benefits were noted as the top reason for leaving an employer in 2004, it has been replaced with the desire for better opportunities and increased responsibilities in the 2006 study. More and more, employees are seeking to improve their abilities and be recognized for their work, and are no longer solely motivated by pay alone.

Companies put into effect many programs to alleviate turnover concerns. Among survey responses, 55% reported implementing enhanced communication with employees, followed by improved recruitment and selection process (17%) and updated job descriptions (17%). Open communication with employees,

The High Cost of Turnover

Fast Fact

While the 2004 average turnover rate for all industries was 18%, the top three industries with the highest turnover were retail, service (profit) and service (nonprofit) with annual turnover rates of 34%, 24% and 22%, respectively. 1

Turnover occurs when employees leave the organization. Because human capital plays a large role in the outcome of a firm’s financial performance, the negative impact of employee turnover gets HR professionals and other executives increasingly concerned. The link between high turnover and low financial performance for corporations is strong. 2 When employees leave, they take with them their knowledge, skills and abilities that helped contribute to goals, profit and performance of the organization. Turnover causes lost productivity and can contribute to low employee morale. It also means that HR and line managers must take additional time to outprocess employees, reorganize existing work, source their replacement, interview candidates, prepare offers and orient new employees to the new position and organizational culture.

HR professionals are in a unique position to understand the overall impact turnover has on an organization. Unlike managers who are often stove-piped in their respective departments and lack access to confidential turnover data, HR professionals are able to view company trends and evaluate patterns of turnover. This perspective allows HR professionals to view the aggregate cost of turnover for the entire organization and, when possible, learn its root causes and suggest possible solutions. But like managers in marketing, accounting, R&D and other disciplines, merely communicating turnover numbers–such as percentage of increases or decreases in turnover–is not enough. For example, when a new product or service offering is introduced, a product manager often provides a profit and loss statement for the product being

Question by Fran M: I run a business projecting £250000 turnover this year. Are we below or over the average in the uk?
I started a business from my bedroom just over 2 years ago. I have now 2 employees and rent a building as my business office. We project to post £250000 turnover this year and 1 million within 3 years. What’s the average turnover in the UK? Are we below or over the average? For this kind of turnover, what shall we expect from our bank in terms of overdraft and loans. We have multiplied our turnover by 5 times in the last 4 months and we need now to make a substancial investment. Our bank manager won’t even give me a business overdraft and this means my business credit scoring is being affected as expenditure has increased exponencially and I have gone overdraft a few times. The worst thing is that there have been 2 cheques returned because there were no funds when they came through. An overdraft would eliminate this issue and also give us flexibility. Am I asking for too much? How should I approach this situation?

Best answer:

Answer by joe perkinstein
LMAO..I dont get out of bed for less than 50 k a day…Ure so passe my friend…

Know better? Leave your own answer in the comments!

Want to know how to reduce turnover? The answer is the PeopleAnswers’ employee assessment solution. Tremendous turnover reductions have led CashAmerica’s Clint Jaynes to support a PeopleAnswers implementation in two different companies. To learn how you can reduce turnover, improve productivity, and overcome most common HR challenges, contact PeopleAnswers. www.peopleanswers.com

businesscoachireland.com Richard cullen ActionCOACH Dublin Ireland works with small and medium size businesses everyday to improve the business and the lives of the owners. To see a series of video tips on how you can instantly improve your business visit businesscoachireland.com
Video Rating: 0 / 5