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The Cost of Turnover? Answers, A Solution, and A Question

The Question:  What is the cost (dollar value) of an employee leaving?  This question came up when I attended a showcase for PXT Select, a great hiring assessment published by Wiley. The total cost of an employee leaving is based on a lot of factors, and the answers covered a wide range.

The Answers:  When you add up all the factors, the cost of an employee leaving is astronomical.  Some estimates I’ve seen:

  • $25,000
  • 50%-150% of the person’s annual salary
  • At least 3 month’s salary

This cost is especially important when you’re hiring, because it’s the cost of making a wrong hiring decision.  People I’ve talked to have different standards for what makes a “wrong hire.”  Some say it’s a wrong or bad hire if the person leaves (voluntarily or through being fired) within 6 months.  Others have put the time frame at 2 years.

A Solution: That’s where PXT Select can help.  With so much money at stake, you need more pertinent information that enables you to make the right hiring decision.

This online assessment generates a report with information about the applicant’s Thinking Style, Behavioral Traits, and Interests.  The report also shows how the applicant’s scores compare to people who have been successful in that position.

The report even tells you what to look for, and what questions to ask, during the interview.

PXT Select provides the information you need to make smart hiring decisions, because it’s Comprehensive, Versatile, and Research-Backed.  Let me know if you’d like more information on this great hiring tool.

Another Question:  What factors are involved in determining such high cost estimates for an employee leaving?  I’ve already come up with 10 factors, but I’m interested in hearing your opinion.  Just put your thoughts in the comments section below, call me at 856 218 7200, or email me at terry@terrywall.com

I’ll share the answers later.

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