...what happens afterward. Because if your employee retention rate is low, your acquisition costs are going to be unacceptably high.
Turnover costs include not just recruiting and hiring, but also training and management time, reduced productivity and increased errors while the employee learns the ropes. Have you ever sat down and figured in cold, hard dollars and cents what those costs are for your business? Here's a handy calculating guide from the Center for American Progress to get you started:
Entry-level employees: 16 percent of annual salary
Mid-level employees: 20 percent of annual salary
High-level or highly specialized employees: 213 percent of annual salary
As you can see, if your new hires tend to leave within a year or two, you won't even break even, much less get a return on your investment in them. Then there are the factors that are more intangible, but no less costly, such as loss of motivation among the employees who stay.
So how can...