Employee turnover has been a difficult issue for the past years because it can cause operating expenses to increase, as replacing staff requires hard costs, soft costs, and opportunity costs. Profitability of the company will definitely drop because these costs are additional. The cost of turnover has 5 steps the 1st step is where the employee receives a notice of position and how it will soon be terminated. The next step is the recruitment process where the company spends it's capital in advertising and recruitment resources, in order to have a new team member join. After the recruitment process, selection is next. This is where interviews, background checks as well as reference checks are done to particular candidates. When the candidate has been chosen training as well as orientation are necessary to have knowledge of how the company runs. Lastly there is the last process which is productivity loss. The hospital industry has shown this process very well because the amount of people for higher level jobs is smaller than of the people for low skill jobs. Which in result shows how employee turnover affects the company's expenses, revenues which in the end drops profits. This on going issue can only help company's change procedures and policies for the better.
Benny Chiang, Clement Ip
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