http://blog.hr360.com/hrblog/minimiz...

00:42 According to the Bureau of Labor Statistics, the median employee tenure of U.S. workers is 4.6 years. However, when it comes to younger workers, in the age group 25 to 34, that number drops to just 3 years.

01:18 The hard costs of employee turnover include things such as administrative processing of an employee’s departure; advertising and recruiting to find a replacement; interviewing, including reference checks and any testing of candidates to replace the departing employee; and orientation and training of new hires.

01:37 The soft costs of employee turnover are sometimes harder to see, but they are real nonetheless. These include lower productivity of the departing employee; lower productivity of the supervisor and remaining team members who must cover that individual’s workload until a replacement is hired; and time spent interviewing and training the new hire.

02:07 A rough guideline is one quarter the total cost of a position’s salary and benefits. For example, if an employee earns $50,000 in salary, imagine that the total cost of salary and benefits would be around $65,000.

Salary x .30 (benefits) = Salary and Benefits
Salary and Benefits x .25 = Turnover cost

02:54 Retention and employee motivation efforts need not cost much, if anything. You can also grow loyalty, and reduce turnover, with things such as flexible work arrangements, the freedom to work independently or seek out more satisfying projects or job roles, and formal recognition programs.

03:18 Over time, even the best companies will see employees come and go. The goal is to keep turnover rates at a level that allows you to maintain both productivity and morale.