Managers should try to keep skilled employees

Friday, March 7th, 2014 By Jack Nevison

Ever wonder how much it costs a business to lose an employee? If you have a leadership role within a company, this is something you should know.

The answer, according to a recent report by CBS News, is about 20 percent of that employee's salary. That's right: if this worker makes $50,000 per year, your business has just sacrificed $10,000 to let him or her go.

Few people realize just how expensive employee turnover can be. The cost of training a new recruit has to be taken into account, as does the cost in lost productivity when knowledgeable workers leave and someone new replaces them. That's why managers need to be on the lookout for ways to ensure that their best employees stick around for as long as possible.

Sometimes, it comes down to money. Certainly, managers should weigh the cost of a person leaving against the cost of giving him or her a raise. But more often than not, employees leave for reasons that have to do with the quality of the workplace. They may feel that their ideas are not being heard, or that they are not respected by their co-workers. Perhaps they believe they can better serve the organization in another capacity.

Whatever the reason, it makes sense for managers to sit down with employees and figure out ways to help them feel satisfied at work. In the long run, it's the financially responsible way to do business.

At New Leaf Project Management, we can help you retain your best employees through our project management training programs and QPM games, which let you learn while you earn affordable PDU credits for PMP recertification.

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"QPM™" is a registered mark of New Leaf Project Management. All rights reserved.

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