There are obvious costs associated with the loss of an employee – recruitment, training and salary. Normal calculations put the average cost at 150% of the employee’s annual compensation figure. That’s a big number! However, every time an employee leaves, there are numerous “hidden costs” that many never consider and, while not as obvious, still have an adverse impact.
- Slippage. When an employee is missing, there is work that isn’t getting done and that has a cost associated with it.
- Ripple effect. Coworkers need to pick up the slack, which keeps them from focusing all of their efforts on their work. Management’s priorities also suffer as they have to devote time to finding and training a new employee, and sometimes covering some of the lost employees responsibilities.
- Patient loss. With the loss of the employee’s knowledge and experience comes the potential for patient satisfaction to be impacted. Patient commitments and service levels often suffer. The patient is eventually impacted again by having to deal with the challenge of bringing a new contact up to speed on their specific situation.