In the dynamic world of business, employee turnover is expected. However, excessive turnover can significantly derail your company’s success. This article delves into the true costs associated with employee departures – costs often far exceeding your initial estimations. We’ll explore strategies to retain valuable workers and bolster your bottom line, with insights from Quinn Vietnam Manpower, a leader in manpower solutions.

Understanding the Scale of Employee Turnover

• Recent studies paint a concerning picture of workforce stability. Willis Towers Watson reports that over 25% of employees are at substantial risk of leaving their jobs, many of whom possess critical skills or high-performance capabilities.
• An alarming 28% of new hires are open to quitting within their first 90 days if unsatisfied (Robert Half study).
• Millennials, a major workforce segment, are particularly likely to leave (45%) if they don’t perceive a clear career path within their company (Ultimate Software).
• Retail managers recognize that reducing turnover by just one employee per month can boost monthly revenues by at least 6% (WorkJam).

The Real Financial Impact of Losing Manpower

Replacing a departing employee is just the beginning of a ripple effect of expenses. While recruitment is a major cost, the financial burden extends far deeper:

• Replacement Costs: Vary greatly by job seniority (ERE Media):

  • Entry-level: 30-50% of annual salary
  • Mid-level: 150% of annual salary
  • High-level/Specialized: Upwards of 400% of annual salary

• Recruitment Expenses:

  • Staffing agencies: 20-30% of the position’s annual salary
  • Internal recruiting: Advertising, screening, interviewing, time investment

• Onboarding Costs:

  • Administrative tasks, initial training, orientation, productivity ramp-up, potential early attrition

• Training Investment:

  • Even skilled workers need company-specific training, with costs varying by job complexity.

• Lost Productivity:

  • New employees take up to two years to match the output of experienced staff (Bersin by Deloitte).

• Declining Employee Morale:

  • Departures impact remaining employees, increasing workload and potentially triggering further resignations.

• Dissatisfied Customers:

  • New hires are prone to errors, potentially harming customer relationships and future business.

Quinn Vietnam Manpower: Your Partner in Workforce Stability

Quinn Vietnam Manpower understands the detrimental impact of high turnover. That’s why we excel in providing not just skilled manpower but tailored solutions to enhance workforce retention. Our expertise can help your company:

• Pinpoint the root causes of turnover through in-depth analysis
• Source highly qualified candidates perfectly matched to your company’s needs and culture.
• Develop effective onboarding strategies to ensure new hires integrate seamlessly
• Implement long-term retention programs fostering employee loyalty

It’s Not Just About Cost, It’s About Investment

Remember, your employees are your greatest asset. Investing in their development, well-being, and career growth is essential for long-term success. High turnover signals issues within your organization. By addressing the underlying causes, you not only save money but also build a stronger, more productive workforce.

Quinn Vietnam Manpower is ready to be your strategic partner in achieving workforce excellence. Contact us to explore how we can empower your company through tailored manpower solutions.

Let’s Talk! How has employee turnover impacted your business? Share your experiences and let’s find solutions together.