b'High Employee Turnover HurtsBottom Line Recent research by an operat everyyear.Averageturnoverrialreductionsintheirearnings ing unit of Nextera E rprises, aacrossallU.S.industrieshasa stockpricebecauseof nte nd globalmanagementconsultingclimbed tolytu r. near 15%.rnovefirm,showsthatemployeeDirectemployeereplacement"Forcompaniesexperiencing turnoverre costs havecosts may bethe tip of thehigh turnover, thereisa strong placementjusticer earnings and stockberg."Employeeturnoverhasapotentialtoin their stock educedpricescrease by an average ofin four highsignificanteffectoncompanies\'price byreducingattrition," said 38% turnoverindustries:specialtytop lines by inhibiting their abilityBurch .is true in cman "Thisomparetail,callcenterservices, highto keep current customers,renies in many indu ies. At aleacqui str tealtech, and fast food.newones,increaseproductivitymarketing service c l center, we "Emp l oyeeandq lity, andpursuegrowthfound that if m nt halved ua anagemeturnoverisdrain opportunities,"saidSeymourthe turnover, whichmanagement ingprofitabilityBurchman, alagreedwasattainable,the comprincipa of Sibson. from companies in"At aspecializespany\'sm valuewouldbe company thatarket manyindustries,"inserviceswithinthehome,"increased by one-third." saidJudeRich,Burchmansaid, "wefoundthat chairmanofSib customer cancellationr wereSteps to Reduce Turnover ates son& Company,threetimeshigher for new salesMa atitative, financially kequantheN sub techniciansthanforexperienceddriven,bu n casefor exterasi ess sidiary whose tal ones,principallybecausecus change by identifying the tota\' entmanagementtomers are more comfortable whencosts of employee turnover, an practicecon theyseefamiliar facesprovidingthe potentialif turnover savings ductedthestudy.services attheir homes.Today\'sis reduced. \'.L, - ~- -""""-"""""Byreducingtightlabor marketshaveexacer Develop austitative and - - rob qualturnover,theopportunitytobated theproblem,forcingmanyquantitative fact base, to identify improve astock pricecompaniestooperateunderthe root cau for turnov of company\'sseser can be substantial,many com capacity-managersarehavingspecific employee segmen . buttsiestorepan havenot declared an all- difficulty finding peoplereplaceCome up with tailored, c ative outwaragainstturnover.Wethe workers who leave, much lesssolutions aimed at eliminating Direct employeebelieve that there are several rea hiring people to p sue growth ini the root causes, r than the ur ather replacement costssons for this: many managers dotiatives. An employee retained, is aflavor-of-the-monthsolution, notknowhowmuchturnovernewhireavoided."Thestudyor what anotherny. compa triedjustre may bethe tip ofreally costs; others have not fig focusedon\'front-lineemployee\'Forexample,throwingmothe iceberg.ured out the root causes, so theyturnover(thoseemployeeswhocashorbenefitsatturnover ire company\'scement do not know what actions to take;have d ct impact on acausedbypooradvanwhile othersmistakenly believecustomers)because"front-lineopportunitiesorunacceptable turnoverisinevitableintheiremployees canhave ajob conte w l not significantntil work. indu impactonrevenuegeneration,ethenecessaryinstry."IdentifyvestAccordingtotheresearch,productivity,andgrowthpoten menttoincreaseemployee angedurchmaturnoverratesr from31 %tial," said B n.retentionandtheexpected annually in call centers to123%Additionally, Bu h intedreturn on that investment. rc man poinfastfood.Sibsonestimatesout that the impacts of turnover are employeeturnoveriscostingnotlimited to just companiesin companiesintheseindustriesthesehigh turnoverindustries. morethan$75billionjusttoCompanieswithhighturnover replace thethanmillionrates in other industries are often more6.5 employees wholeave companiesunknowingly experiencingmate-'