Thursday, August 16, 2018 - 07:40
The cost associated with employee turnover is a reason for managers to take staff performance management seriously. As an example, at Microsoft, "The average cost of turnover is $100,000 per employee, including recruiting, training and lost productivity... " Not all organizations will pay such a high price for employee turnover; costs will vary from organization to organization and from industry to industry. However, given that organizations now spend over one-third of their revenues on employees and benefits, the importance of effectively managing employee performance cannot be stressed enough.