The Work institute continues to have great success helping companies control manageable human capital expenses such as turnover costs, retention, productivity, absenteeism, and employee relations violations. The Work Institute helps companies become preferred employers, control HR expenses, mitigate risk, and increase human capital financial contribution.
Successfully competing for talent and reducing human asset expense requires a measurement first approach, and attention to the costs of talent loss, and attention to attraction, retention and risk mitigation. Ineffective human capital management is an extreme financial cost! Companies can quantify the contribution (and loss) of talent attraction and retention to growth and profitability.
- It can cost as much as $10,000 to hire a new manufacturing employee.
- One U.S. clothing retailer estimates it spends about $15,000 to replace a retail clerk.
- A study completed on the West Coast put the cost of replacing an IT worker at 125% of the employee's salary.
- To fill a vacant corporate executive position, it can cost as much as 300% of the executive's salary.
Cost implications for turnover in U.S. organizations are huge. The U.S. Department of Labor calculates (conservatively) replacement cost at one-third of an employee's annual salary. Turnover forces lower profits and compromised customer satisfaction.
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