Poor retention and high turnover ratios is the silent thief in every company.
Losing one good employee typically costs a company at least 150% of that person’s yearly salary. So many hidden costs are associated with poor retention, including the initial hiring costs (ads, interviews, screening costs, training and acclimation, etc) in addition to lost wages, customer dissatisfaction, team morale, termination costs, and possible legal ramifications.
The good news is that for every dollar spent on retention and proper hiring methods, a company normally gains a 4:1 or better return on investment, even the first year.
What is the turnover % in your organization and what does this equate in lost revenues and bottom line costs? If you don’t know, then it is probably costing you far more than you ever imagined.
Calculate your return on investment
Retention Case Study
The Bair Foundation is one of the largest foster care providers in the US, caring for children from birth to 18 years of age. The social services industry inherently has high turnover rates. 40% - 50% turnover per year is not uncommon. This equates to 100s of thousands of dollars to our bottom line each year, but the greater cost is the effect this can have on expansion and consistency of operations. PeopleKeys helped us hire smarter, and helped us to retain our best people through understanding of how to manage and motivate. We are able to develop our front line workers into the directors and leaders we so desperately need to strategically sustain our growth. While some turnover cannot be avoided, the Bair Foundation has cut the avoidable turnover issues in half, helping Bair to be an industry leader and expand our core business – caring for children.
-Sue Miklos, Executive Director
The Bair Foundation |
