Newsletter

How to Calculate Turnover Costs and Take Action to Build a More Resilient Workforce The ripple effects of employee turnover can run deeper than most companies anticipate. Beyond the immediate hit to your budget, losing an employee can impact team morale, disrupt workflows, and delay critical projects. Understanding the true cost of turnover—and how to calculate it—puts you in a better position tackle this challenge head-on. The Layers of Turnover Costs Turnover doesn’t stop at replacing a team member. It’s a layered expense, often including: Recruitment and Onboarding: From posting job ads to training new hires, costs can add up quickly. Lost Productivity: New employees rarely hit the ground running, and it can take weeks or months before they’re fully contributing. Team Disruption: The loss of a key player can decrease team efficiency and morale, potentially leading to further turnover. Lost Knowledge: Departing employees take valuable institutional knowledge with them, leaving gaps that take time to fill. Calculating Turnover Costs for Your Business Every company is unique, but the formula to calculate turnover costs remains consistent. Here’s how you can break it down: Recruitment CostsRecruitment Cost = Job Ads + Recruiter Fees + (Hours Spent Hiring × Hourly Salary of Hiring Team)This includes expenses like job postings, recruiter time and interview hours. Onboarding and Training CostsTraining Cost = (Training Hours × Hourly Rate of Trainer) + Cost of MaterialsFactor in the time and resources required to get a new hire up to speed. Lost ProductivityLost Productivity Cost = Annual Salary of Role × Estimated Productivity Loss (%) × Months to Full Productivity ÷ 12For example, if it takes 6 months for a new hire to reach 100% productivity and they operate at 75% efficiency during that time, the lost productivity can be significant. Intangible Costs These are harder to measure but shouldn’t be overlooked.Consider the potential for delayed projects, team morale impacts, or customer dissatisfaction during the transition. What Turnover Could Be Costing You Let’s say you lose a mid-level employee earning \$70,000 annually. Here’s a rough breakdown: Turnover for just one employee can cost upwards of 40% of their salary, and the numbers rise with senior or specialized roles. How Talent Retriever Helps Reduce Turnover Costs Talent Retriever focuses on helping companies not only find the right talent but also retain it. We help businesses: Turnover is inevitable, but its cost doesn’t have to spiral out of control. With the right approach, you can build a resilient team and significantly reduce the financial and operational burden of replacing employees.

The Interview Isn’t A Transaction— It’s Your Brand’s First Date We’ve all heard how important it is to make a good impression on candidates. But let’s push past the usual buzzwords and see the big picture: every step of your hiring process is a window into your brand. It’s like the difference between a bland first date and one that leaves you excited for what’s next. Here’s how I’ve come to view the candidate experience— shaped by founding and running a top recruiting consultancy and helping countless companies scale through strategic hiring—from an angle you won’t hear every day. Hiring Is an Invitation to Join Your Story Most organizations focus on the “need” for specific skills—think of it as the job description. But truly visionary companies treat hiring as inviting someone to help write the next chapter of their story. Candidates aren’t just puzzle pieces to fill a gap – they’re potential co-authors who can shape where you go next.  Share Your ‘Why’: Instead of rattling off job requirements, open with the broader mission that guides your company. Why do you exist? How do you hope to impact the world or your industry? Paint the Future: Show them where they fit into the bigger picture—and why it matters. Let them see that this role isn’t just about a paycheck; it’s about building something meaningful together. Interviews Should Feel Like a Conversation— Not an Interrogation If the process is stiff or formal to the point of awkwardness, you’ve already lost the chance to bond on a human level. When top talent senses they’re being “processed,” they’ll tune out. Ask Unexpected Questions: Move past the usual “Where do you see yourself in five years?” Instead, explore what energizes them, what they’re curious about, or what big problems they dream of solving. Show Genuine Curiosity: The candidate is evaluating you just as much as you’re evaluating them. Show you’re ready to meet them as a peer, not just an interviewee. The Silent Treatment Kills the Vibe Ever been on a date where the other person disappears for days on end? Doesn’t leave a great impression. It’s the same with candidates. Make Quick Follow-Ups a Habit: Even if there’s no major update, a friendly note saying, “We’re still reviewing,” can speak volumes. Build Communication Touchpoints: Map out specific moments to connect—right after an interview, midway through the process, and when making decisions. This removes guesswork and makes candidates feel valued. Don’t Just Talk About Culture— Show It Culture is more than a slogan on your careers page. It’s revealed in every interaction, every message, every Zoom call. If you preach flexibility but force candidates through rigid hoops, your words and actions don’t match. Personalize Where You Can: If you know a candidate is passionate about sustainability, for instance, have them speak with a leader who’s driving your company’s green initiatives. Involve Future Teammates: Nothing says “we respect your time” like letting people meet the folks they’ll work with daily. It’s transparent and helps both sides get a real sense of fit. Why This Matters More Than Ever We’re in an era where top candidates have endless options. They can skip to the next company the moment they sense disorganization or indifference. By being intentional—treating interviews as crucial brand moments instead of perfunctory steps—you stand out in a crowded market. But it’s not just about landing A-players; it’s about building an organization that thrives when they join. A smooth, meaningful hiring journey is the first signal that you’re serious about excellence and humanity in your workplace. Final Thought Hiring shouldn’t be just about “filling a seat.” It’s about giving people a glimpse of your vision, culture, and impact—then inviting them along for the ride. Approach every step with authenticity, curiosity, and mutual respect, and you’ll attract a team that’s genuinely excited to build something remarkable with you.