Monday, December 7, 2009

Human Resources-Employee Relations

Lets say that you have an employee that works for you and quits after (8) months with your company. Many experts state that the cost of replacing that employee will be equal to his annual salary.....sound too high? I don't think so-when you add up all of the training costs that go out the door with the former employee and the costs associated with finding and training his replacement-then add the administrative costs. The $ add up quickly. If Mike starts his new employees at $10.00 an hour-that is about $20,000 a year. Think for a minute about the significant amount of money that Mike's Carwash saved when they reduced turnover by 25%.

By the way, what is your annual turnover %? When an employee leaves your company, how much $ does it cost your company to replace him?

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In your opinion, which of the following is the most effective way to recognize an employee for a significant accomplishment at work?