For any human resource department the pain of experiencing employee turnover often times continues to be an ongoing exercise of non-stop hiring with a target to lower the costs of attrition. So what are the real costs of employee attrition?

Here are just a few of the costs identified by Inspired Performance Solutions, Trinity Human Resource Solutions and the International Customer Management Institute:

Costs are broken into three primary categories; direct costs, opportunity costs and indirect costs.

Direct costs include:
  • Recruiting
  • Training
  • Agency fees
  • Overtime
Opportunity costs include:
  • Lost customers
  • Decreased productivity
  • Diminished resources
Indirect costs include:
  • Effect on morale
  • Culture and climate
  • Loss of intellectual capital
According to Inspired Performance Solutions “calculations can easily reach 150 percent of the employee’s annual compensation figure, and significantly higher (200 to 250 percent of annual compensation) for managerial and sales positions.”

“For example: assuming an average salary and benefits of an employee at $40,000 per year, the cost at 150% of salary, the cost of turnover is then $60,000 per employee. For a mid-sized contact center of 200 employees with a 50 percent annual turnover, the annual cost of turnover is $6 million.”

“The bottom line for any company is employee attrition is a profit killer and unfortunately it’s also a silent killer too. Why? Many companies do not measure it, nor do they have any idea why it’s taking place.” – Warren Collier, President Trinity Human Resources Inc.

“Did you know that 85 percent of the people let go last year were due to relationship problems and the average manager spends 19-29 percent of his/her time resolving personality conflicts?” – Dr. Taylor Hartman, The People Code.
“EQ – Emotional Intelligence, is responsible for 58 percent of your job performance… 90 percent of the top performers have a high EQ.” – Daniel Goleman, Primal Leadership.

What is this telling us? That making choices about who to hire, and how they will fit into the team strikes right at the bottom line of your organization's profitability. 

The solution? 

Bring the tools that help you assess not just intellectual skills (IQ) but personality strengths and EQ for those you hire. Second, if you are struggling with ongoing people issues, managers frustrated with the amount of productivity lost due to challenging communication among team members and leadership, consider educating all of the parties involved through personality assessments and interpersonal skills workshops that deliver not just information but practical learning targeted to improve communication styles, emotional intelligence and productivity.

For more information on the Color Code Personality Assessment and Interpersonal Skills Workshop click here