What does employee turnover for small businesses? owning

What does employee turnover for small businesses?

owning - a small business is an exciting thing. In fact, according to Forbes, to 543,000 new small businesses starting every month - that's a lot! If you find this interesting, more than 50 percent of the working population works in a small business. However, many small businesses close each month due to several factors - one of which is the employee turnover

But what makes the employee turnover for a small business group.? Is there a way to track it?

If you are a small business owner, the threat of cost of sales eat slowly in your company should be real and addressed. Knowing how sales affects can save your business from this very expensive, invisible danger to you and your costs

. Tip: our new our new eBook Download "10 Strategies outstanding employee retention program to build on a Small Business Budget" for more employee retention strategies

To Lost an employee or two.? - Seem like it's no big deal, financially, but it is what is the cost of

, the loss of an employee here and there can. It is important to track sales, so that you, as an entrepreneur, know exactly what you spend. the current cost of employee turnover by understanding, you can keep track of the costs over time and the positive effects of Employee Retention Program to your bottom line.

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Calculate your costs

losing the costs for an employee, varies depending on the industry and role in the company. Here, the estimates are based on a Center for American Progress study you can use to estimate your costs:

• Less than 30,000 $ / year: 16% of annual salary

• $ 30,000 - $ 75,000 / year: 20% of annual salary

• $ 75,000 + / year: up to 213% of annual salary (highest for hard to replace, high yield CEOs)

Now calculate cost of employee turnover for a period. In the example below, the company has 24 employees (EBS) and had four employees leave in Q4

Tip .: you wonder how to reduce turnover? Often small businesses are health benefits or other employee pay benefits for themselves in terms of, in order to reduce the cost of sales.

These costs Consider

Now that you can, like really see much revenue, cost you, it is important to a lot of that costs to understand where does. Everything costs money. Although that hiring a new employee seems to be, or a release is, costs nothing to you, here are a few things to consider that in the total cost of sales are factored in.

• Productivity: You need to remember that if you are short-handed, put your current employees in overtime. You can to end up needing a temporary or contractor and hire. None of these options are a permanent solution and will eventually need to be replaced by a full-time worker.

• Recruitment : This is one that really can cost a lot, depending on how you handle it. You can set the time to count referencing takes, review resumes, interview, background checks, drug testing, etc. all as costs. Your time is money, and if it is spent on constantly looking for new employees, chances are that it will not be spent on other valuable components of the company.

• Onboarding: Even if you are able to quickly hire someone and have regrowth time cut , do not forget that your new hire training is not an overnight task. They are at least a week to spend on it, the way things are done training in your company. Also, the prices of training materials, made possible errors, and bring in a staff to shadow them contained.

If you can learn sales embrace tracking for your business, you have the option to set the time and money on them in the heart of your company would have been issued.

What is the employee turnover to a small business? Join the discussion and share your insight and advice in the comments below.

Source: Forbes

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