Is Employee Churn Cost You as Much as Your Salary Expense
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Wiki says that the cost of employee turnover can be 150% of your salary expense. It is one of those hidden costs one does not focus on. These include costs due to person leaving, recruitment costs (both internal and external), Training costs, Lost productivity costs, hiring costs and potential loss of sales or loss due to poor customer contact and internal teamwork.
Transcript of Is Employee Churn Cost You as Much as Your Salary Expense
Value Creation by Customer Value Foundation
Is Employee Churn Cost You as Much as Your Salary Expense
Wiki says that the cost of employee turnover can be 150% of your salary expense. It is one
of those hidden costs one does not focus on. These include costs due to person leaving,
recruitment costs (both internal and external), Training costs, Lost productivity costs, hiring
costs and potential loss of sales or loss due to poor customer contact and internal teamwork.
Evoloshen, who specialises in employee churn, states the ROI on employee development
therefore could be anywhere between 30 to 7000%. The number can be huge, enough for
you to investigate.
In India, for example if you took the salary at Rs 1,00,000,and the replacement cost as
Rs60,000, and if you lost 50 employees a year your cost would be a minimum of Rs
30,000,000.
So, preventive measures are required. You should think of adding value to your employees,
over the value they can get at some other company. What do employees value? Is it just the
salary, the ambience, the company, the experience they gain, how marketable they are
because they work for you, training and educational opportunities, growth opportunities etc.
Is your company better at this?
Do your managers think of employee value or meeting their goals. Is reduction of churn a
goal? Are your managers value creators?
If you need help in measuring or creating employee value contact Customer Value
Foundation
Value Creation by Customer Value Foundation
Gautam Mahajan is a thought leader in Creating Value and can be reached at [email protected]
Call at (+91) 9971288580
Gautam Mahajan, President-Customer Value Foundation
M: +91 9810060368
Tel: 11-26831226, Fax: 11-26929055
email: [email protected]
website: http://www.customervaluefoundation.com
Customer Value foundation (CVF) helps companies to Create Value and profit by Creating Value for the customers,
employee and for each person working with the companies.
Total Customer Value Management (TCVM) transform the entire company to focus on Creating Value for the customer by
aligning each person's role in Creating Customer Value and getting shareholder wealth and Value.
![Customers Churn Prediction using Artificial Neural ... · devising of churn policy [16] is depicted in Fig. 2. Fig. 2. The Six Steps for Customer Churn Prediction. Churn prediction](https://static.fdocuments.in/doc/165x107/5e71a26fb4acff71e10cc1fe/customers-churn-prediction-using-artificial-neural-devising-of-churn-policy.jpg)
