Employee turnover is inevitable, but when it is excessive, employee turnover often puts a business into the red. The costs of turnover are easy to overlook or ignore – but ignore them at your own peril.

Excessive employee turnover has obvious costs you can track, but the real costs take a greater toll. Many new employees do not become fully productive until they’ve been trained and gain experience, a process that usually takes several months. The time, effort, and money invested in those employees walk out of the door when they leave.

For a ballpark estimate of the money your organization loses to employee turnover, we suggest using a conservative one third of the total payroll of the people who turned over.

Example of Employee Turnover Cost Analysis and Return on Investment:

Example One:

A company has 100 employees.
Turnover is only 20% per year.
Employee turnover cost is 3 months wages (very conservative)
Average wage is $9.00/hr. plus 20% benefits.
Existing yearly employee turnover cost = 100 employees X 20% X $5,616 (including benefits) = $112,320 per year.
Let’s say the Profile XT reduces employee turnover by a conservative 50%. Often the percentage is significantly more. The yearly savings is = $56,160.
The yearly cost of using The Profile XT after the initial study = $7,200
Your Return On Investment (ROI) = $56,160/$7,200 = 780%!!!
This is why so many organizations are using The Profile XT.
 

Example Two:

A company has 100 employees.
Turnover is only 20% per year.
Employee turnover cost is 3 months wages (very conservative).
Average wage is $8.00/hr. plus 20% benefits.
Existing yearly employee turnover cost = 100 employees X 20% X $4,992 (including benefits) = $99,840 per year.
The Step One Survey II can typically reduce employee turnover by at least 20%. The yearly savings is = $19,968. (This does not include the reduction in employee theft and the increase in productivity)
The yearly cost of using the Step One Survey II = $1,080
Your Return On Investment (ROI) = $19,968/$1,080 = 1,848%!!!
This is why so many organizations are using the Step One Survey II.

Now think about the impact of saving that amount of money. What could your organization have done with that investment?

With Profiles International, you do not have to surrender to your employee turnover rate. Profiles International will help you identify top performers the first time, as well as match existing employees to the positions in your organization that provide the best job fit. By focusing on job fit, you will increase your organization’s retention of key employees.

Below:  The Solution

		Profile XT The Profile XT™ through its innovative JobFit™ technology, measures essential data an employer needs to make better hiring, training, managing, and promoting decisions. The Profile XT™ employs advanced online technology that predicts job suitability and accurately matches people with the work they do.
Technical Specs:
Solves these challenges: Deciding Who to Promote, Hiring Employees with Low Productivity, High Employee Turnover, Ineffective Training, Poor Communication, Organizational Identity Confusion, Interdepartmental Conflict, Profitability Issues Used For: Placement, Promotion Fit, Succession Planning, Coaching, and Self Improvement Measures: Thinking and Reasoning, Occupational Interests and Behavioral Traits Areas Measured: Learning Index, Verbal Skill, Verbal Reasoning, Numerical Ability, Numeric Reasoning, Energy Level, Assertiveness, Sociability, Manageability, Attitude, Decisiveness, Accommodating, Independence, Objective Judgment, Enterprising, Financial, People Service, Creative, Technical, Mechanical
Time to Take: 50 minutes Administration:                 Online or Pencil / Paper Report Types: 7 Different Reports Results Turnaround:   Immediately
More about the Profile XT here

Have a question?  Ask us.

	Michael R. Teakell, SPHR, HR Manager, Superior Energy Service     "At one point we had a turnover rate of 40 percent. With the aid of the Profile XT and the Step One Survey assessment, we've reduced turnover to 29 percent. Based on the cost of replacing an employee, we have more than paid for the assessments."

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	Misti Merriam HR Manager, National American University     "Profile XT helps us get a grip on employee turnover. The assessment also helps us get people in the right job. Since using Profile XT, we've decreased turnover in certain areas. We have no complaints and found Profiles' training very useful."