Losing a key employee can cost a company as much as twice that person’s salary in lost profits!
Turnover seems to vary by wage and role of employee. For example, a CAP study found average costs to replace an employee are:
- 16 percent of annual salary for high-turnover, low-paying jobs (earning under $30,000 a year). For example, the cost to replace a $10/hour retail employee would be $3,328.
- 20 percent of annual salary for midrange positions (earning $30,000 to $50,000 a year). For example, the cost to replace a $40k manager would be $8,000.
- Up to 213 percent of annual salary for highly-educated executive positions. For example, the cost to replace a $100k CEO is $213,000. (read more in peoplekeep.com)
You Don’t Keep Staff by Just Hanging on to Them! Improve Their Lives and Your Company!
As I have noted again and again: for free markets to prevail, market operators must act with integrity!
As I wrote in “About Markets and Choice in a Free Society” featured in Mixed Market Artist, consumers AND PRODUCERS must make responsible decisions in a free market, capitalist SYSTEM; if we do not, then the society will be lost.
The area of Human Resource Planning generally does not receive as much acclaim or attention as many other areas of business building, but it is an area where all the difference can be made between one enterprise and another.
Amazon is Doing Great Things to Attract and Retain Talent!
Amazon has often come under fire for its treatment of employees. So, you might be surprised to discover that their current approach to human resource management is actually leading the pack in many regards.
- In 2019, Amazon initiated a plan to invest more than $700 million to retrain workers across the U.S. to allow them to move into skilled technical and non-technical roles across its corporate offices, tech hubs, fulfillment centers, retail stores and transportation network. The company’s goal is to “upskill” 100,000 of its U.S. employees for more in-demand jobs by 2025 — or, one in three of Amazon’s U.S. workers.
- In particular, Amazon has its eye on job roles like data mapping specialist, data scientist, solutions architect and business analyst, as well as logistics coordinator, process improvement manager and transportation specialist, it says. Based on a review of its workforce and U.S. hiring, these are the fastest-growing highly skilled jobs over the past five years.
- For example, data mapping specialists have seen job growth of 832% in the past five years, based on Amazon’s own data, while data scientists jobs grew 505%, solutions architect grew 454%, security engineer jobs grew 229% and business analyst jobs grew 160%. Meanwhile, the highly skilled job roles in customer fulfillment have grown by 400%.
Companies Build the Skill Sets of Americans
Business owners should remain aware that they are on a mission to find good people and then do more than just pay them. Determine what trends are at work in your industry and in the overall economy. Be sure to allocate resources to develop your staff to prevail through those trends. By accomplishing this, you will strengthen your business, improve employee levels of satisfaction, and develop a stronger, better skilled overall American workforce.