Question:
I want to know if there is any way to evaluate the cost involved when a high staff/personnel rotation takes place in a company.
Answers:
In order to get an idea of the cost associated with high turnover, you have several options open to you. First, you can find / buy generic information for your industry. In this case, your getting approximate based on industry specific polling data. It's ok, but may / may not be even close to the actual costs you incur. Another option is to use a simple, ABC method or activity based costing approach. This can can either simple or incredibly complicated - usually the more complicated the "better" or closer to real costs. On the basic end, you estimate the costs associated with attracting, and training new people for the positions with high turnover. This would include advertising costs, the salaries and time spent on interviewing the prospects, the salaries or time spent adding the new people to the network and the time spent on training the new employees. You must differentiated between normal costs and the specific costs associated with training the new or high turn-over positions. This involves interviewing all the people involved and asking their input on how much time it takes them to perform all the tasks associated with training the new people. Good luck and hope this helps.
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