The negative consequences of turnover are at least as costly as "employee replacement" expenses. If you are experiencing turnover, then it is probable that you are experiencing one or more of these negative consequences. Be sure to consider these when calculating the cost of losing employees.
Consider the cost of:
- Operation lost productivity. The work a person is leaving must be covered. Someone else's work may suffer because a co-worker is gone; deadlines (or service level) may be missed. Peer "discussion" about the vacancy may consume valuable time.
- Supervisor lost productivity. Supervisors spend more time managing new employees (observation, feedback, etc.); therefore, they experience a decrease in their productive time.
- New hire decreased productivity. Consider the amount of time it will take the new hire to reach the productivity level of the exiting employee. What is the cost of that lost productivity?
- Lost customers. Losing valued customer service or sales employees can lead to decreased customer satisfaction and loyalty. Is it possible that employees might take customers with them? Will you find it necessary to take special precautions to keep customers that regularly dealt with the departing employee? Do you track this?
- Lost sales. How many sales do you miss or lose because you have lost talented workers? What is the value of the missed opportunities?
- Lost knowledge. Did the employee take valuable learnings with him? The contact center environment is conducive to tacit knowledge walking out the door.
- Decreased customer service. Customer service can deteriorate when employees leave. What does this cost you?
- Decreased employee morale. Morale can take a negative hit when good people leave. What does this cost you?
- Lost profitability. Can you measure the cost of lost profitability for your department or the organization overall?
- Increased mistakes. Can you quantify the cost of mistakes the new employee makes?
- Project degradation. Was the departing employee involved in any projects that will now suffer? If so, what is that cost?
