Employee turnover has cost US industries more than $630 billion. (Work Institute, 2020)
Blog Credit: Andy Chase
Is turnover a problem for your company?
You’re not alone. Losing key resources has always been a challenge and area of increasing risk for companies.
In the last year or so, more and more valued workers are making moves leading to what has been called the “Great Resignation,” the “Big Quit,” the “Great Reshuffling,” also the “Talent War.”
As a result, years, sometimes decades, of institutional knowledge can be lost overnight.
What is the cost of turnover?
The actual cost for replacing lost employees differs for entry-level, mid-level or highly skilled workers.
Sparkbay has shared some simple formulas and a free calculator with turnover costs ranging from 30% to 150% to up to 400% of annual salaries.
The latter costs are associated with replacing mid-level and highly skilled workers.
Key cost variables include recruiting, hiring, onboarding, training, and all of the lost momentum, productivity and efficiencies realized before, during, and after the worker is lost and replaced.
Problems and costs may increase when…
- The person being replaced was wearing multiple hats which can’t be backfilled with just one new hire
- The person being replaced kept their systems and institutional knowledge close to the chest, rarely sharing with others
- There is little to no documentation or defined procedures for someone new to follow in their footsteps
- There aren’t others readily available in your company to provide adequate transition support
- The new resource takes months or longer to complete the onboarding process (without appropriate knowledge transfer and guidance)
- The new resource is more junior than their predecessor, and will need longer-term help growing through skill and experience gaps
- There are others in key roles who depend on that person to resolve critical business issues
What can be done to mitigate the risk and cost of turnover?
Introducing Smart Help Transition+ from Circular Edge
Transition Support for Business Analysts, Architects, Developers,
Project Managers, CNCs & More
Let Circular Edge and Smart Help be your secret weapon for overcoming challenges with losing key resources:
- Production Support Continuity: Production Support, Troubleshooting & Guidance during transition period
- Project Continuity: Staff Aug and Project Resources to assist as needed in maintaining project timelines
- Documentation Support: Experts to help document JDE Systems, Standard Operating Procedures, Training Materials
- Recruitment Support: Leverage CE network to find ideal replacement, pay for performance ONLY, C2H and/or interviewing assistance options available
- Onboarding Support: Knowledge Transfer, Training, Supplemental Support & Guidance to help new hire get up to speed quickly, filling gaps along the way
- Ongoing Support: Leverage Circular Edge team thereafter for skills enablement, backup coverage, vacation support, seasonal busy periods, project backlog & more
Many companies depend on other employees and managers to pick up the slack when a team member is lost. Those valued workers who remain can leverage Transition+ for guidance, troubleshooting and backup support as needed to resolve business issues. The newly hired worker can then leverage Transition+ as needed for documentation, training and guidance to ensure efficient onboarding all while working together to make sure every critical business issue is resolved.
Contact Circular Edge today to learn more about how Transition+ can help support your success during a period of change.