Whilst this statement is often true, did you know that the average cost of recruitment can amount to the equivalent of a year’s salary when you take into account agency fees, management time, induction training & lost business opportunity? So whether you lose only one member of staff or hundreds it will have a negative impact on your companies bottom line.

Noble HR Solutions have a unique approach to attrition management, we don’t just investigate why a person leaves a company; we also investigate why they stay. We gather information relating to a number of key stages within the employment cycle. By conducting this level of research we can help companies understand what motivates their employees & help the company become an “employer of choice”, thereby reducing the level of attrition, which has a positive & direct impact on the company’s profit & loss.

Example:

• Assume a company of 1,000 staff with an average salary of £15,000, an attrition rate of 14.5%
• Managers salary £20,000, 20 days worked per calendar month
• Average Recruitment costs = £ 3,462

So cost of replacing 1 member of staff:

Recruitment cost	£ 3,462
Management time (4 days)	£ 330
Induction Training (5 days)	£ 420
	______
Total direct costs:	£ 4,212

So the direct costs of an attrition rate of 14.5% equates to £ 610,740 per annum*

So reduction of 2% has an immediate saving of £ 84,240 plus it dramatically reduces the impact on the business as it has retained trained & experienced staff

*Cost excludes the impact of the lost business opportunity as it takes on average 6 months for a new employee to be recruited, trained & achieve operational effectiveness

To find out more about how we can help reduce your staff attriton rates please click here to contact us.