Nothing is permanent; it’s inevitable for people to leave an organization at some point in time. But what’s the true cost of losing an employee? What are the hidden costs when the worker decides to walk out the door of the company for the final time? Let’s take a look at the real price of talent leaving your workforce.
Who’s doing the recruitment? Is it someone internal in HR or do you need to hire someone from outside? Will you need to pay to advertise for the open position? Is the person you are recruiting local or do you have to pay to fly them in for an interview? And will that person (and their family) require relocation?
The new employee will need some level of training. The hire will need orientation into the company, requiring time from an existing employee. It might be necessary for the new worker to attend external courses to acquire specific skills. No one can start the job on day one without some instruction.
Will you miss a deadline or delay your workflow if someone leaves the group? Will your response rate or other services you provide to your customers be affected by the loss of an employee? How do the remaining co workers respond to an increase in workload until the position is refilled? And with the additional workload – what new business opportunities are you missing since you are shorthanded?
What’s the cost of processing everything to get the new employee in and the old employee out of the systems such as payroll and IT? Will you need to buy a new computer for the new hire? Who will explain all the employee benefits to the new worker? Is there a severance cost when the existing employee leaves or a signing cost for the new employee?
Employee turnover has hidden costs that need to be measured. It’s hard to quantify exactly how much of a loss there is for the organization when talent disappears. Consider the above – it may be more beneficial to keep the existing worker. So think twice before letting your current employee, with all their knowledge, walk out the door.