You may recall that in an earlier post, I mentioned some of the lessons from successful retention projects. Some of you may be familiar with these points if you have read the guide I produced on this topic some while ago.
Anyway, today I'd like to say a few words about one of the key points and this is: awareness of the cost of turnover.
To put it simply, some departures are very costly to the business, while others barely make a difference. You really do need to be able to distinguish between the various categories. Sure it is not easy to put an exact figure to the cost of turnover, but to make an assumption that all departures result in a cost of turnover of say 50% of salary, or 100%, or even 150% is not remotely sensible.
Successful retention projects recognise the importance of the cost of turnover. They know the importance of producing a decent return on investment.
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