Many times when I visit with potential clients (or with current clients), I ask them what their employee turnover rate is. They usually come up with some number off the top of their head, and you can tell it is a complete guess. I believe it is very important to not only know your current employee turnover rate, but to have goals in place to reduce that number as well. Employee turnover is VERY expensive for your organization- there are many costs associated with constantly having to hire new employees because someone is leaving:
---Hiring costs
---Training costs
---Loss of productivity
---Potential loss of business revenue
---Also, higher claims ratio than businesses with lower turnover rate!!!
As I visit with potential clients or current clients about their employee turnover rate, I find many owners or managers are resigned to a higher-than-necessary turnover rate, telling themselves that “that’s just the way it is in today’s market or in this line of business”. Granted, some business types are inherently more inclined to higher employee turnover rate than others, but that doesn’t mean it can’t be improved!
The most important question you can ask yourself is “What the main reason we are having this high employee turnover rate”? Maybe it’s poor training methods, maybe it’s certain people in your organization that are running employees off, maybe it’s poor hiring procedures. Whatever the reasons, get to the bottom of it! This problem is costing you money in the long run, and costing you in additional insurance premium as well.
Happy, healthy employees make your sales go up, they make your claims go down, and they are a lot more fun to be around. Message me back and let me know if you are having employee turnover problems and what you would like to see your business achieve as a turnover rate in the future.
Bobby Bland PWCA, CIC
Vice President
Commercial Risk Service
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