High staff turnover not only drives up recruiting costs, but also causes considerable IT expenditure. These costs can be reduced with smart solutions.
Staff turnover is a constant companion in companies, and studies show that it is continuously increasing - exacerbated by the ongoing shortage of skilled workers. According to the HR survey by Wirtschaftsmacher, 85% of companies confirm that they are suffering from a shortage of skilled workers. At the same time, 80 percent see staff turnover as a significant problem. 67 percent of those surveyed expect the situation to get worse.
The consequences are serious: an increasing workload for the remaining employees (according to 59% of respondents) as well as increased personnel and recruiting costs. In addition, valuable skills are lost, which impairs a company's innovative strength and competitiveness in the long term.
The cost of staff turnover
Losing an employee is expensive - not only because of the obvious recruiting costs, but also due to indirect expenses. According to the Work Institute, every lost employee costs the company an average of a third of their annual salary. Gallup even estimates this figure at up to twice the salary.
The costs are divided into direct and indirect costs, whereby the latter are more difficult to quantify as they include, for example, loss of productivity until the employee is fully trained, loss of know-how and knowledge gaps or demotivation and uncertainty in the team.
The direct costs of staff turnover include
- Ad placements
- Recruitment fees
- Costs for temporary staff
- Salary costs for the HR department and managers for recruitment interviews
- Travel and relocation costs
- Starting bonuses
- Training and induction costs
- Provision and installation of IT equipment
The last point in particular is often underestimated. New employees need functioning IT equipment in order to be productive. The provision of laptops, monitors or mobile devices not only incurs direct costs, but also ties up IT resources.
