It is often said that a company’s most valuable asset is its staff. Therefore when a company experiences a period of high staff turnover, this can have huge costs to the business both financially and also in terms of output and productivity.
Staff leaving to take on employment elsewhere is unavoidable; however, when this starts happening with increased regularity you should look at the underlying reasons for the departures before it begins to cost your company dear.
What is employee turnover?
Employee turnover is the proportion of employees who leave your company during a certain period of time. In most cases this is calculated on an annual basis and represented as a percentage of your total personnel. Figures from XPert HR show that resignation rates are currently at an all-time high of 15.5%, with total turnover (including dismissals and retirements) being 23% on average.
What is perhaps more significant is that 10% of new starters fail to clock up 12 months service before moving on. With the various costs involved in recruiting a new staff member, having them leave the business within the first year represents a considerable investment for relatively low returns.
Source - Read More at: blog.careers.org