How to Avoid Staff Turnover Headaches by Caleb Brown - ThinkAdvisor
What You Need to Know
- The estimated financial cost of turnover can range anywhere from one to three times a departing team member’s compensation.
- If the list of responsibilities is more than a page long, it’s time to break the job up into multiple roles.
- Firms must be clear on what they are hiring for; the default is a catch-all candidate for a catch-all position.
Virtually every firm owner has experienced the challenging financial and non-financial impacts of staff turnover.
The estimated financial cost, depending on the source, can range anywhere from one to three times a departing team member’s compensation. However, this is not the most detrimental cost though. Even worse is the psychological impact of frequent turnover and how it causes the existing team members to lose confidence in their leader(s), increases the difficulty to recruit good new talent (due to perceived impaired culture and employee-unfriendly reputation) and can lead to an overall downward spiral of morale.
Most turnover stems from these four actions: 1) unclear role and responsibility, 2) insufficient screening for skill and cultural fit, 3) lack of clear expectations, and 4) poor overall management/mentoring.
