Staff turnover and absenteeism – the costs

PLEASE NOTE
The TWM site is dead. If you click through you will be taken to the Internet Archive site to find an archived copy.

This is the first part of a 3-part analysis of staff attrition (turnover) and absenteeism, their costs, causes and management. Besides being a good general look at the concepts, the article cites various interesting and relevant cost studies. Some summary findings:

– The cost of staff turnover is best calculated as 80% of the annual salary for the job in question. This means that for every case of staff loss, there is an additional 80% hit to the salary bill.
– The cost of absenteeism without replacement by overtime or temporary staff is best calculated as 138% of salary – for the time that the employee is off work.
– The cost of absenteeism with replacement by overtime or temporary staff is best calculated as 212% of salary – for the time that the employee is off work.

Editor’s Note:
Part 2, “Staff turnover and absenteeism – the causes”
http://www.theworkingmanager.com/articles/detail.asp?ArticleNo=668

Part 3, “Staff turnover and absenteeism – managing the problem”
http://www.theworkingmanager.com/articles/detail.asp?ArticleNo=670

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