Transcript Employee Retention and Turnover PowerPoint

Employee Retention
and Turnover
Costs Associated with Hiring A New
Employee
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Recruiting (Advertising, Reviewing
Resumes and Applications, etc.)
Interviewing
Hiring (printing name/security badges,
running background checks, drug testing,
etc.)
Training (Books and Materials)
Reduced productivity (Salaries for those
who have to stop their day to day
responsibilities to perform all of the above
functions)
How Much is it Really Costing?
SHRM, the Society for Human Resource
Management, estimated that it costs
$3,500.00 to replace one $8.00 per
hour employee when all costs were
considered. This was the lowest
estimate of respected companies
who calculated this cost!
Other Source Estimates
It costs the company 30-50% of the
annual salary of entry-level
employees, 150% of middle level
employees, and up to 400% for
specialized, high level employees!
Quick Calculation
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Think of a job in the
hospitality industry,
perhaps a supervisor
or manager. Let’s
estimate their
replacement cost.
Average Annual Pay for a
Manager or Supervisor
$50,000
X 1.25
(125% of their annual pay)
Replacement Cost
$62,500
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This means it costs $62,500 to
replace just one supervisor. If this
company loses ten supervisors a
year, then 10 times $62,500 equals
$625,000 in replacement costs for
just supervisors.
The Bottom Line
Our industry is very competitive!
If our employees don't trust us to treat
them fairly and respectfully, they will leave
us.
Our employees will go to other hotels and
restaurants in hopes of better treatment.