Save Significant Turnover Costs
Organisations are facing millions of dollars in losses by ignoring costs associated with employee turnover, estimated at up to 100-500 percent of the employee’s salary. Identifying the underlying causes and taking action can not only save significant dollars but success can be quantified in a tangible way, giving HR a powerful opportunity to demonstrate its contribution to the bottom line.
| Why do so many organisations lose good employees? | The real problem is a lack of understanding about the issues causing high employee turnover. A recent survey by the Chartered Institute of Personnel & Development revealed that only one in four companies’ use exit interview data to address the escalating rate of labour turnover. Awareness of the issues that lead to employees departing provides an opportunity to take action. |
| Why a well structured exit interview program is essential | A well structured exit program should ensure that the interview itself covers all aspects of the organisation, allowing the departing employee to reveal their perceptions in areas where the organisation can influence change. These might include learning and development, management processes, benefits, pay structures, work processes, working conditions etc. It is a pointless operation if exit interview information is not analysed and reported objectively. Unfortunately many organisations find it an onerous task to invest time and money in HR resources when it is not part of their core business. As a result exit interviews are not carried out effectively and the employee is left with the impression that the information is filed and forgotten. |
| Benefits of outsourcing the exit interview program | Exit interviews can take considerable time to design, conduct, analyse and document, especially when you don’t have the in-house expertise. The benefits of outsourcing the entire program include :
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| Workforce Retention offer an exit program with all the key components | Workforce Retention is a consultancy that focuses on decreasing turnover rates and highlighting the significant cost saving back to the organisation. Not only do they conduct an effective exit interview program but they also steward organisations through that crucial next step of taking action. This is done through facilitated workshops where the results of the final report are used to form a basis for consensus, discussion and structured action. When turnover decreases, success is then measured and demonstrated in financial terms. In many cases, reducing turnover by just 5% can return hundreds and thousands of dollars in costs savings to the business. |
Document Created: 13th July 2006, 12:00pm | Last Updated: 14th July 2006, 6:18pm