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New Tool for Employers Calculates the Full Cost of Employee Turnover

posted by n1 on Tuesday May 19 2015, @06:38AM   
from the real-costs dept.

"gewg_" writes:

The other day, we discussed a company that sees its workers as assets to be cherished and nurtured. Sadly, there are a lot of companies that see their employees as "human resources" to be used up and cast off. Maybe those enterprises need a better means to evaluate the wisdom of that tack.

Common Dreams reports

Employee turnover costs businesses millions of dollars each year. However, many employers don't accurately track this expense, which could be reduced by improving workplace conditions. To help business owners understand the cost of turnover, the Center for Law and Social Policy (CLASP) and Center for Economic and Policy Research (CEPR) have released an updated turnover calculator.[1] This dynamic tool allows employers to calculate turnover costs by responding to 10 simple questions.

When employees leave or are laid off, companies incur numerous expenses searching for and on-boarding their replacements; these include advertising, recruiting, background checks, benefits administration, training, and lost productivity while new employees become proficient at their jobs. Taken together, these costs can have serious implications for bottom lines. The turnover calculator allows businesses to input wages; weekly hours; and recruiting, hiring, and training costs to determine the financial impact for different categories of workers.

[1] The link(s) in the article redirect. I have provided a direct link in the summary.

• Seems unlikely Seems unlikely (Score: 0, Flamebait) by Adamsjas on Tuesday May 19 2015, @07:56AM

  by Adamsjas (4507) on Tuesday May 19 2015, @07:56AM (#184967)

  I doubt some SJW site is going to come up with something believable and "new" that has somehow escaped the attention of entire generations of bean counters and MBAs. Sure, lots of them are pretenders. But the most know a few things about cost accounting and performance measurement that your average sjw hasn't a clue about.

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• Gimme Basic Income Gimme Basic Income (Score: 0) by Anonymous Coward on Tuesday May 19 2015, @08:03AM

  by Anonymous Coward on Tuesday May 19 2015, @08:03AM (#184971)

  Tax the rich. Give to me! I deserve a basic income. For great social justice.

  Parent

  • Re:Gimme Basic Income (Score: 2, Insightful) by Anonymous Coward on Tuesday May 19 2015, @04:44PM

    by Anonymous Coward on Tuesday May 19 2015, @04:44PM (#185126)

    The idea behind basic incomes is that businesses can't survive if nobody has any money to spend. If people are guaranteed to have survival costs covered, that automatically makes every dollar they have disposable, which means demand, which means $profit.

    Parent

• Re:Seems unlikely (Score: 2) by n1 on Tuesday May 19 2015, @02:16PM

  by n1 (993) on Tuesday May 19 2015, @02:16PM (#185068) Journal

  To put this in perspective about the idea coming from a 'SJW' site...

  The group behind this 'tool' is:

  The Center for Law and Social Policy (CLASP) is an American organization, based Washington, D.C., that advocates for policies aimed at improving the lives of low-income people.

  That:

  The organization is a 501(c)(3) organization supported by a number of foundations, including the Bill & Melinda Gates Foundation, the Ford Foundation, the W.K. Kellogg Foundation, the Atlantic Philanthropies, and various individual donors.

  There is an argument to be made that Bill Gates, FoMoCo and Kellogg have some business acumen.

  Source: http://en.wikipedia.org/wiki/Center_for_Law_and_Social_Policy [wikipedia.org]

  Parent