Have You Calculated The 'Hidden Cost of Turn Over'? (English)

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MER_PEND_Blue copyIf an employee resigns, a company must pay not only the financial cost such as compensation and the cost of recruiting a new employee but also the hidden costs of turnover such as decreasing productivity due to the resignment. Besides that, the company must concern with the time required by a new employee to be able to work in the team work as qualified as before one of the employees resigns.

Paul Surprenant, President Director of Mercer said, the best way of reducing the hidden cost of turnover is reducing the turnover rate itself. And for that, the company must determine the cause of the high turnover. Whether it is because the less of attractive benefits, the less of promising career development programs, or because the company culture that makes employees feel uncomfortable.

As an experienced consulting firm that has handled more than 600 clients in Indonesia, Mercer is not only able to identify those kinds of problems but also to identify the key workers who contribute a lot of success of the company. Mercer also able to identify whether the company has recruited the right people or not, in which level of employee the turnover highly occurs, and map out the replacement of employee accordingly if the employee in certain position resigns. Eventually, the company will know how to reduce the turnover rate, and how to achieve acceptable turnover rate which is not causing a quite high costs for the company.

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