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| Hiring, Terminations and Retention |
| The High Cost of Employee Turnover |
Employers are often tempted to offer a minimal compensation package, or reduced benefits to employees in an effort to lower costs. But these employers often fail to factor in the cost of training new employees as a result of high turnover rates when disgruntled workers take their experience and look for a company that will do a better job of “taking care of them.”
The cost to train an employee is about $4,809.00 according to The PEO Insider Magazine.It is not a matter of a little paperwork and some start-up costs. You must also consider the expense of the search for a new employee, time for co-workers to re-train a new worker, and loss of productivity due to the departing employee’s slowing down in the final days of employment (and co-workers making up for the slowdown).
If the position is left vacant for a period of time, there is an additional loss of productivity. Before skimping on a benefits package, consider the increased buying power you get when your benefits are handled by a PEO. You can provide a top-notch benefits package at minimal cost.
Source: The PEO Insider.
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