OCTOBER 25

This turnover doesn’t leave a good taste in your mouth.

TOO EXPENSIVE FOR MY TASTE

You probably know turnover is expensive. You just may not realize how expensive.

Studies calculate the cost to replace an employee is at a bare minimum 30 percent of salary—and can rise to as high as 200 percent. Such calculations take into account advertising costs, temporary replacement costs or overtime costs while the job is vacant, lost opportunity costs, search-firm fees, relocation costs, time to interview, and time and cost to orient and train the new person.

Nowadays, it’s not enough to just get good people in your front door. You need to find ways to keep them from walking out the back door. Recognition is the solution.

A Watson-Wyatt Reward Plan Survey of 614 employers with 3.5 million employees demonstrated that the average turnover rate of employers with a clearly articulated reward strategy is 13 percent lower than that of organizations without a well-communicated plan.

Hey, 3–5 million workers can’t be wrong. Slow the flow with recognition.