The real cost of employee turnover

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Do you have any idea what it costs to hire a new employee?

“Often we don’t take into account how much it costs our company to replace a ‘bad’ recruitment choice,” says Rachel Johnson, owner of Palomino Training Solutions. “We go about the recruitment process as if we are ordering people online, without too much thought or consideration about exactly what we are looking for or what our company requires.”

So, what are the costs that are actually involved when replacing staff members? From running an advert to screening and interviewing the candidates, this all takes money to happen – someone’s time, telephone calls, stationery, etc.

“When a new employee starts their position, they are not able to operate 100% independently for the first couple of months,” says Johnson. “Someone needs to spend their time training the newby and familiarising them with company protocol, culture and methods.”

This means that for the first couple of months the new position is not operating at 100% and neither is the position of the person helping the new person with their onboarding. Two expenses that we very rarely consider.

Other costs include testing costs, evaluating costs, training costs, amongst others. Some companies have identified costs ranging from 35% to as much as 100% of an employee’s annual salary.
From this we can deduce that using proven methods to hire the right person is crucial to saving money and ensuring company success.

If you would like to learn more about recruitment and selection techniques and methods, join us at our upcoming 2019 public courses. They will be held on 4 September, 31 October or 1 November in Cape Town, Pretoria and Durban and the cost is R2,295 ex vat per delegate. This one-day interactive course includes modules on: developing a CV screening guide; interview preparation & format; interviewing techniques; and much more.

This course is also available as an onsite option at your work premises throughout SA (contact us for the very competitive prices) and also as an online (e-learning) option.

“Our aim is for delegates to leave our workshops feeling inspired and motivated, with a wealth of knowledge and hands-on tools that they are able to implement immediately,” says Johnson.

Palomino Training Solutions, which was established in 2006, offers over 150 training courses ranging from telephone etiquette, public speaking and business writing to conflict resolution, recruitment & selection and supervisory skills.

For more information, contact Rachel Johnson on 082-878-1164, email [email protected] or visit www.palominosa.co.za.

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