Interviewer Skills and Performance Management Training: How much will it cost you if people leave your company?

Will people jump ship if the green shoots of recovery appear?

How much will that cost your business?

A while ago CIPD came up with these figures of  replacing people.

“On Average” it costs £17k to hire and replace a good manager who leaves your organisation.

That figure dropped to “On Average” £7k to hire a new individual contributor…

(We cover this topic and others in both Interviewer Skills Workshop and Performance Management Training Workshop )

We think these numbers are very very conservative . We’d like to encourage you to come up with your own numbers.

Here are some of the factors that we think you should consider to come up with your specific numbers.

  • Cost of hiring someone via a recruiter
    In some industries that is 30% of first year salary
  • Cost of Job Boards +  Classified Ads Career Fairs/ Misc
  • Cost of time spent sourcing resumes
  • Cost of Time Spent Reviewing 1 Resume x Ratio of Resumes Reviewed per Phone Interview
  • Time Spent per Phone Interview x Ratio of Phone Interviews per Person to person Interviews
  • Cost of Time Spent per Personal Interview x Ratio of Personal Interviews per Realistic Job Preview (or 2nd Interview)
  • Cost of Time Spent on Realistic Job Preview (or 2nd Interview) x Ratio of Job Previews (or 2nd Interview) per Offer Extended
  • Time Spent Preparing an Offer
  • Cost of taking up references / background checks
  • Number of Offers Accepted
  • Costs of training a new person
  • Management time to On-Board that person and get them up to speed.
  • How much less productive is a new employee in first year vs previous experienced employee?

Using these numbers what is your total cost of replacing a good manager and a good performer?

Remember these people may have left because they didn’t feel appreciated, recognised  or developed or could see no career path.

We think it would be a great exercise to work out YOUR numbers..
We’d be very interested in hearing from you too.

We also think that when there is a discussion about whether it’s worth training your managersto

We think this would be a good time to get these numbers out and add those to the discussion too.
Then make the decision on whether there is an ROI on training.