HR Insights with Ali: The High Cost of Employee Turnover
Posted on 7/12/2017 by Ali Oromchian, Esq.
While many employers understand the general concept that employee turnover can be negative, few are able to truly grasp the far-reaching effects, and therefore the costs, that are associated with a higher turnover rate. Here are 7 unexpected costs associated with employee turnover which may deserve more of your focus:
1. Your patients are impacted when a position sits vacant.
2. Being understaffed places a higher burden upon your current employees, who in turn may also consider leaving.
3. Losing female or minority workers reduces crucial workplace diversity.
4. Losing a good worker means losing a potential future leader.
5. Addressing an unfilled position uses management time better spent elsewhere.
6. A replacement hire may be more expensive.
7. Hiring a replacement worker means additional onboarding and other training expenses.
When an employee leaves your office, especially unexpectedly, you will immediately have to shoulder the expenses and your time, related to finding and hiring a replacement. But their absence may also cause a ripple effect in a number of areas. Specifically, if this employee had been with you for some time, then their presence was likely appreciated by their fellow coworkers and patients. You will then need to address their absence and try to make up the difference - or you risk losing more than just this one worker.
The bottom line is that unnecessary employee turnover may be costing your practice money and time in more ways than you imagine. Of course, no practice is immune from turnover. Employees move, have family issues that require their attention, or sometimes switch fields entirely. But do not fret, you can increase the chances of retaining your valued employees with better training, better rewards schedules, and stronger anti-discrimination policies within your office.