The real cost of employeeturnover is much higher than you might expect, since only 10% to 15% ofturnover expense is immediately visible. In addition to direct costs associatedwith recruiting and unemployment compensation, reduced productivity andefficiency and the need for orientation and training contribute to hiddencosts. In fact, some personnel experts estimate the total cost of turnover at1.2 to 2 times the departing employee’s annual salary.
So, how can your tiredealership escape some of these costs? First, recruit with care and conduct athorough pre-employment background screening. This may prevent you from hiringan employee who may not fit in with your business.
And, a good rule to rememberis that employees who are treated fairly and with respect are more likely toremain loyal. Concrete ways of establishing a positive work environment includecompetitive pay and benefits, enhanced employee communication, a team settingand a superior quality of supervision.
When employees do leavedespite your best efforts to keep them, conduct exit interviews to helpdetermine the reasons they are leaving and how you can retain others in thefuture.
– Source: Tire ReviewBusiness Toolbox
