Bags of Money - Part two
The Cost of Turnover
People Profits has shown an amazing ability to save Bags of MoneyTm for our clients by properly formulating and implementing an integrated Human Capital Strategy and Plan. If you have been following People Profits you will know that the seven elements of Human Capital Management can work synergistically like a wheel or can conflict and tear each other apart. This conflict costs you and your business A LOT OF MONEY!!
The ultimate test of your Human Capital Strategy and Plans is employee turnover. People Profits has shown, time and again, that a well conceived and implemented Strategy and Plan can significantly reduce employee turnover – which leads us to Bags of MoneyTm.
One case in particular, the savings were 1.7% of revenues! Could your business use an extra 1.7% profit margin? The People Profits website has a Turnover Calculator to assist you in determining how big your Bags of MoneyTm are. Please Click Here to go to the calculator.
- You can average the income for all your positions and determine your annual cost by using the total number of employees lost in a year.
- If you do not have a Hiring or Training Manager then you need to use the salary of the closest person to that position who are performing those duties – it might be YOU!!
Now that you have determined how big your Bags of MoneyTm are – wouldn’t you rather have that money and have an easier time of managing your people?
Clark Ingram, MBA, SPHR, CEBS, CPCU is the principal of People Profits which is a financially oriented Human Capital Strategy and Planning firm based in the OKC metro area. www.PeopleProfits.com. ©2012 People Profits, LLC