While all of us know that employee turnover costs, we do not calculate the money value of this loss. If we did the sheer value in rupee turn will blow us away.
HR understands that there is a cost of recruiting new employees and inducting them so that they become productive. But as pointed out by Gwen Moran in “The hidden cost of employee turnover” there are many other costs such as slippage (lost sales, new products not being launched etc.), ripple effect (other members of the team having to pick up the slack), customer loss (as intellectual property leaves with the employee, customers get fidgety and migrate with key employees) and lost credibility (existing employees become demoralized and decide to move on).
While employee turnover exists everywhere there are sectors where it is endemic and it specially affects small enterprises.
This means that it makes business sense to invest in your employees. One major investment is training and coaching. Training and coaching of current employees and careful recruitment of prospective employees therefore is not a “oh by the way” activity but a key to increased productivity.
According to Gallup studies employees do not leave organizations but their immediate boss. When I look back at my career I realize that in some places that it exactly why I left.
Conversations over coffee have revealed that it is a major cause for employee’s deciding to move on.
Are their bosses “evil” people” or do they merely lack some key people management skills?
My bet is they lack skills. And this is where attitude and behavioral training and coaching become the key to unlock potential.
References: http://www.entrepreneur.com/article/220254
Contributed by Lovely Kumar, Chief-Projects, Larks Learning.
Contact 91-9899108659 or lovely@larkslearning.com
P.S: We at Larks conduct training and coaching programs on enhancing a manager’s ability to manage his employees.