People turnover
What is the true cost of someone leaving the organisation? Many leaders and employers don’t possess correct estimates and when asked to place a figure on it they often significantly under-estimate the costs. Our research shows that the cost of someone leaving is between 3 months and 2 years of employment costs, depending on a range of factors. So for a person whose annual salary and other costs total £20,000, the cost of leaving would be anywhere from £5,000 to £40,000.
Many types of employers, from big multinationals to public sector organisations, are beginning to recognise that if they invest in Wellness Management for both frontline employees and leaders (who will lead better); they are ultimately less likely to leave. Of course some turnover is healthy for an employer as it brings in people with new ideas and ways of doing things. However, working out the optimal turnover target and being able to achieve it is one of the most under-developed aspects of leadership in many organisations.