Hello, and thanks for tuning into the FineAwards.com recognition and retention roundup. Recently, we went over how to calculate the exact pre-departure cost of replacing a worker. Let’s look at some more ways to figure out just how much you’re spending to fill that empty spot.
To figure out vacancy costs, take the amount of time the position is open, the number of hours per week your remaining staff needs to work to make up for the deficit and the combined hourly pay of these workers and multiply them together. Do the same for this team’s supervisor and add the numbers together. It’s important to note that positions with higher salaries cost more to replace – a worker making $80,000 can cost you $120,000 to replace.
In addition to this figure, think about how much your company spends on training and new hire orientation. These costs quickly add up, which is why a focus on employee retention is key. Recognizing efforts with custom awards can go a long way toward keeping your workforce whole and keeping turnover costs down.