Turnover is Rising
Updated: Nov 23, 2020
Does it feel like you are losing employees at a record level? If your organization is like many of the ones we work with in healthcare, then employee retention and turnover has become a major problem. Do you know how much this turnover is costing your organization? According to a study by the Society for Human Resource Management, replacing an employee can cost up to 5 times the annual salary of the now vacant position.
In addition to the expenses incurred with the recruitment, vetting and training of new personnel, you have hidden costs when current employees are asked to pick up the slack and a temporary reduction in service as new employees get up to speed. To make matters worse, management resources are being diverted to replacing employees instead of focusing on the organization’s initiatives.
No matter what the reason, employee turnover can have a negative impact if not managed well. HR experts stress the importance of identifying potential employee issues during the recruitment and hiring process to ensure you find the best fit and the need to set up a program to make sure new employees are “engaged” in the organization’s mission in an effort to slow down the revolving door.
But aside from managing this personnel issue, it is important to regularly review your vendor contracts and relationships for any impact from staffing changes. Did the person with signing authority leave? Are you paying for services or licenses based on inaccurate headcount? Are you reclaiming assets as part of the exit process? Expense Consulting can help identify these potential vendor concerns to help alleviate some of the financial pain associated with the turnover.
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About Expense Consulting
Expense Consulting is a full-service accounts payable auditing and cost reduction consultancy, helping organizations significantly reduce operating expenses. Since 2009, we've helped hundreds of organizations recover millions of dollars of over-billings and have secured millions of dollars in future cost savings. To learn more about reducing your organization's expenses, contact us at (860) 761-3500.