The Real Cost of Losing an Employee!
 
Statistics suggest that every time you lose an employee to another company, it costs you at least $10,000. In some cases, depending on the position, the cost can be as much as $40,000.

Can an HR department improve turnover statistics? Absolutely! The more your employees know about your commitment to 
   

them, the more they understand how vested you are in their future, the more they'll be committed to you. One of the most effective ways to share that information is through personalized benefit statements and total compensation reports. A well designed personalized benefit statement creates:

  • Improved morale
  • Higher productivity
  • Reduced turnover
  • A more profitable company

Companies which have switched to personalized benefits statements report increases in 401(k) and other plan participation. By sharing their company's benefit philosophy, they retain the right to be flexible—to change the program if need be.

Is it difficult to create effective individualized reports? Not at all. Hartford Media does all the work for you. Is it expensive? Not nearly as expensive as losing key employees.

Make it easy for your employees to say, "no," when the competition calls. Put an end to employee turnover and call Hartford Media today!

Losing an employee costs money. That's no surprise. It's only when we put specific numbers to the loss that eyebrows are raised. Human resource studies suggest that losing one employee to a competitor will cost your company anywhere from ten to forty thousand dollars, occasionally even more. Rarely, though, do the studies specify where the dollars are lost.

How can losing an employee be so expensive? Following are 7 factors explored by Hartford Media:

  • The Lame Duck Factor
    Once employees have given notice, and oftentimes even before, their focus begins to shift. It becomes difficult to concentrate on the work at hand when you're anticipating a significant change. Productivity declines.
  • The Search
    While the costs of recruitment are, for the most part, easy to identify, they are also significant. Qualified applicants for important positions are rarely easy to find. Depending on the need, expenses can range from the placement of classified ads to a full-blown search campaign. It takes time to review resumes, to make good decisions. And time, of course, is money—your company's money.
  • The Right Stuff
    It's not uncommon, especially when the position you're filling is a critical one, for a number of employees to get involved in the final selection process. While they're interviewing candidates, they're not getting their jobs done. Some companies also bring in outside testing resources, even industrial psychologists, to help ferret out the best person for the job. The decision is important. After all, if the selected applicant doesn't work out, you get to start the entire process again!
  • The Gap
    Unless you're lucky, there's generally a gap between the time one employee walks out and the new one walks in. What's the cost? Ask the employees who are asked to fill the gap. Overtime, tiredness, missed deadlines. Disruption to the "normal" work flow. Distractions for key members of your team. And oftentimes a loss of morale.
  • The Newlywed Game
    Finally, your new hire is aboard and you're back on track. Right? Not quite! First, there's the learning curve, often accompanied with specific (and not inexpensive) training. Then, there's the introduction—to the company as well as the market. Do you have a company directory? At least one page will have to be changed. How about a website? Then there are business cards, introductions to vendors as well as customers. And maybe even a formal announcement.
  • The Customer
    Does business go away when employees do? Sometimes! What interaction did your former co-worker have with customers? Do they miss him? Will they go with him? If he was a sales rep, or even a CSR, your risk increases.
  • The Competitive Edge
    Maybe the employee who left your employ had some special knowledge. Maybe that knowledge will allow your competitor, the one she joined, to catch up with you more quickly. Or even jump ahead. What's that worth?

Can you put a cost on the legacy—an employee's knowledge, the store of history—that disappears when an employee leaves? For that matter, can you put a specific cost on the seven factors Hartford Media has identified? Probably not. But looked at in combination it's easy to see where the range of $10,000 to $40,000 comes from.

At Hartford Media, we believe that an ounce of prevention is worth a pound of cure.

Hartford Media has established its credentials with corporate HR departments and benefit consulting firms as a provider of customized Employee Benefit Statements and individual Benefit Packages. Hartford Media enables organizations to reach every individual in a group, to manage data and information so that each person in a target audience receives a message that matters.