![]() Vacancy costs such as overtime for other staff or temporary staffing. ![]() Separation costs such as exit interviews, severance pay, and higher unemployment taxes.Your employee turnover rate costs you money in unexpected ways: It takes a lot of time and work to replace an employee and that labor includes costs. There are more costs that employers might not be aware of, such as the intangible costs of replacing an employee. Jobs that are very complex and that require higher levels of education and specialized training like electricians and engineers tend to have even higher employee turnover costs.For employees earning $30,000 or less, the typical cost of turnover is 16 percent of their annual salary.For workers earning less than $50,000 annually, the average cost of replacement is 20 percent of their annual salary.A CAP study found average costs to replace an employee are: If you think you can live with that employee turnover rate, think again. A Construction Dive Report states that the average employee turnover rate in construction is between 20-38%. With all these new jobs being created, why are employee retention notoriously low? The Tangible Employee Turnover Cost This is about 8% of the overall employment increase for the country. In the past year, the construction industry has created, on average, 28,000 jobs a month. Let’s talk about the costs of employee turnover. Reducing employee turnover by changing your company culture could help with the repercussions and costs of replacing an employee. A high employee turnover cost can harm any business, especially in the construction industry.
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