money matters
ment, career growth, quality employees and the company
having a good reputation.
Cost of employee turnover:
• SHRM, the Society for Human Resource Manage-
ment, estimated that it costs $3,500.00 to replace one
$8.00 per hour employee when all costs -- recruiting, in-
terviewing, hiring, training, and reduced productivity were
considered.
• Other sources provide these estimates: It can cost
30-50% of the annual salary of entry-level employees,
150% of middle level employees, and up to 400% for spe-
cialized, high level employees!
The actual cost of employee turnover is probably
much higher than estimated, because who is really track-
ing the cost. Of course, some employee turnover will hap-
pen and for some it is welcomed. In fact, some turnover
is essential to get rid of unproductive employees and to
bring in fresh blood and new ideas. However, preventa-
tive measures should be in place to measure the cost of
retaining employees, know who is leaving, and why they
are leaving.
How Employee Retention
As an employer, analyze what you are offering your
employees. Look at the culture and environment that’s
been created. Would you like to work at your company? If
not, make changes to retain good employees to save your
Saves Businesses Money?
business time and money!
Sharman Lawson is a financial coach, writer, and
UNI_CBP-1422-COdream-AAfemale.pdf 1 4/28/09 12:16 PM
author of the book 12 Steps to Eliminate Debt Forever!
Visit her website at www.freedomconceptsusa.com.
By Sharman Lawson
If you have a company with employees are you doing
what you can to retain them? In other words, do you care
if your employees stay or leave your company?
Employees are the backbone of any organization.
Therefore employee’s motivation, morale, recognition,
and retention should be high priority for an employer. The
best organizations are on the top because they value their
employees, and they understand how to keep them glued
and loyal to the organization.
Employees stay and leave organizations for many
reasons. It is up to the company to understand why their
employees are leaving. Every time an employee leaves
a new one has to be interviewed, go through screening
C
and background checks, be trained and allowed time to
come up to speed in learning their job. The whole process
M
takes a lot of time and money. The process of having em
Y
-
ployees leave and having to find new hires should not be
something business owners continuously strive for.
CM
Here are some secrets to retaining employees:
MY
Compensation: Decent salary, benefits, bonuses, CY
vacation, personal leave, and stock options
CMY
Growth: Provide personal and professional training,
K
development, and education
Support: Employers should create a trusting envi-
ronment, management feedback, employee assistance
programs, counseling services, recognition programs,
and make employees feel valued.
Rapport: Management should create a culture of re-
spect, integrity and loyalty at the top and allow it to tickle
down amongst peers.
Atmosphere: A great business environment includes
a culture of shared values, risk, trust, employee develop-
 The Michigan FrontPage • May 29, 2009
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