Payroll is a big deal. It’s a lifeline for employees, and it’s the largest expense for a company. The expenses directly tied to employee compensation are vast:
Errors in the payroll process can cause huge issues ranging from monetary losses to a weakened company reputation.
Monitoring and assigning a dollar figure to employee turnover is important for any business.
Researching the cost of turnover can be difficult because there are many qualitative and quantitative elements that go into determining the true cost of turnover for an organization. However, companies need to track employee turnover so they can look for and minimize causes of turnover, in part to protect their bottom line.
Attrition has always been expensive for companies, but in many industries, the cost of losing good workers is rising, thanks to increasingly tight labor markets. This makes measuring employee turnover more important for employers.
How can you gauge if you’re spending too much on employee turnover? What is the average employee retention rate?