Poor engagement? That'll be $88,000 please
By Alex Manchester, Editor, The Internal Comms Hub (Australia), Melcrum
We ran a news story on The Hub today looking at the costs of poor retention and engagement for organizations, and the amount of money involved is pretty alarming. Massive, in fact.
According to recruitment firm Hudson, the cost of hiring, training and orientation can be anywhere between AU$29k and AU$88k per exiting employee. This cost can triple depending on the amount of expertise the person takes with them and the loss of productivity caused by their leaving. And these are conservative numbers, according to Hudson.
This specific report was Australia-focused, but I'd be surprised if the amounts were dramatically less elsewhere. You have to agree that even as a conservative estimate the figures are vast.
Inevitably, financial incentives and development are seen as the key engagement "initiatives". But, while this rings true on face value, I know a few people that have moved jobs for less or the same money but better prospects (I guess this is also development) and culture, or just a better culture, or to work in a field they're passionate about, so I don't think it's as black and white as is made out. But sure, money is always going to be important.
In light of this report we've created the poll below, which you'll also find on the Hub homepage. All results are collated automatically wherever the poll is posted (this is a great little tool provided by Vizu).
Is your company doing enough and are you engaged?
This is a very interesting topic and one in which I have invested much time in various sectors. Engagement is without a doubt critical.
Recent research has made me look at this differently - and I'd be interested in your thoughts?
http://mcarthursrant.blogspot.com/2007/12/employee-engagement-bowled-out.html
Posted by: Scott McArthur | December 31, 2007 at 05:36 PM