Employee Turnover - The Hidden Cost

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Greg Smith
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PERSONAL MESSAGE FROM THE

CAPTAIN OF THE SHIP

I speak about the power of a motivated team that understands their mission. This
past week was incredible as I saw those dynamics -team work, leadership, creative
problem-solving - play out in a spirit of service for people in need. I spent a
week in a small village in Nicaragua building homes for poor families and walked
away with much more than I gave. If you would like to check out some pictures,
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Thanks to those who contributed to this effort.

So back to work! In these changing economic times, details matter and we are eager
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Contact us today about upcoming events, training, tools or resources. Visit our
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Helping you Chart Your Course!

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Employee Turnover - The Hidden Cost
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There are many tasks involved in running a successful business. You have to understand
your customer so you can provide a product people want. You have to watch your competitors
and seek to always adapt to changes in the market, and innovate for solutions.
A successful business is always looking for ways to cut costs and increase revenues,
so they can grow their profits.

However, have you considered an often untapped source of new productivity and savings:
Employee Retention. Retaining your employees and reducing turnover is a crucial
part of running a successful business.

Employee retention is important because employee turnover costs time, money and
productivity. According to The Society for Human Resource Management, only 33 percent
of businesses track employee turnover, which means 67 percent of businesses are
missing out on a huge source of savings and growth. The cost to replace new staff
can be as high as 60 percent of an employee's annual salary, SHRM reports. Furthermore,
if you factor in the loss of productivity and the cost of training new hires, that
number jumps to as high as 200 percent of an employee's annual salary.

According to the U.S. Department of Labor's Job Openings and Labor Turnover Report
[http://r20.rs6.net/tn.jsp?e=001vIrIvHW3rjbNDrmTQC2uMuRvaVrO38o7IOWuRCAo0NnsMqeA2luXXNLwY_B_-Fv4PrB9I4LOXNeYBa-FZFLskhJYhP4PHoCG7XoFLO-hO6nIQm_mg4Q_hXmoTLSzXXbScKB389C2xtb9CZ_FpGd2cWbjFhi8wNaAbBt-M-9VrtqtkTzi0EoWKx3VGQjbdh8wQ1ZHBDpbN4HIc-7NF9ez3cXZlFM6ypYyq2KzdauLlPN3NWH7YZgBg36XV3EVptWbmTGBKE83X-rDHMn_v-UsDRK6Dcd-QzpC],
the number of job openings (around 3.6 million nationwide) has risen from 1.8 percent
in October 2009 to 3.1 percent this September. With more jobs available, businesses
are at greater risk of losing their best staff to competitors. The highest turnover
rates were in construction and hospitality. The lowest turnover rates were in government,
manufacturing and education.

Additionally, companies with high turnover of skilled employees, such as health
care workers and hi-tech positions, may have to wait some time to fill that vacant
spot. "Organizations that do not develop strategies for addressing employee turnover
may find themselves with pervasive skill shortages to fill the positions in the
future," said SHRM in the Executive Report for its 2011 Human Capital Benchmarking
Study.

So what's the good news? Implementing a plan to retain your employees is a sure
way to make your business more profitable and competitive. Understanding why your
employees leave, and what benefits and policies could make them stay - is the first
step to turnover turnaround. For each relationship fostered and employee retained,
a company can save its business real money and avoid disrupted client relationships,
delayed customer deliverables and the inevitable lag in overall productivity.

Let us know if we can help you design an employee retention strategy for your organization.
Email us. [mailto:info@chartcourse.com]

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Employee Selection and Development Assessments
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Hiring and promoting the right people into the right jobs is the first step in accelerating
organizational performance. Our talent management solutions and employee and management
assessments allow you to hire, develop, promote and retain top performing people.
We provide a portfolio of personality assessments, job matching, 360 leadership
assessments, DISC training workshops and certification programs.

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2012 Productivity Metrics by Industry by SHRM
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Industry

Average

Annual Turnover

Revenue

Lost Per Employee

Cost

Per-New Hire

Services, accommodations, food and beverage

35%

$183,173

$1,062

Arts, entertainment andrecreation

27%

$188,817

$1,394

Retail, wholesale

22%

$523, 529

$2,549

All industries

15%

$339,785

$3,196

High-tech

11%

$207,763

$3,357

Government

9%

$204,594

$2,293

Association-profession/trade

8%

$294,582

$5,582
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Upcoming Training Opportunities
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DISC Certification Training Program

(Live Webseminar)

Individual personality styles have a direct impact on our interpersonal relationships
at home and at the workplace. People differ from each other in fundamental ways
including their values, behaviors, talents, temperaments, wants and beliefs.
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and assessments help you identify these variances, hire the right people, reduce
conflict, improve communication and unleash team performance.

Classes are conducted in four, 90-minute sessions.

Upcoming class dates:

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1-800-821-2487 or 770-860-9464
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Tools and Resources
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Here Today, Here Tomorrow: Transforming Your Workforce to High Turnover to High
Retention

"Here Today, Here Tomorrow" provides dozens of case studies and hundreds of tips
and ideas from a wide range of industries and businesses. This information will
help you reduce employee turnover costs, improve employee retention and reduce
employee turnover.

Special sale: $19.95

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Online Leadership Development Courses
Our leadership and management training courses will help you advance your career
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Service First Video Library

The Service First Customer Service Video Library is a powerful video-based training
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