Welcome to Strategic Concepts

The high cost of turnover

How much does employee turnover cost your company?

Here's a few things to consider when making that calculation.The following is a comprehensive checklist of items to include when calculating the cost of turnover in your organization. To determine the costs, have the hourly and weekly cost of fully loaded payroll costs (i.e. salary plus benefits) of the vacant position, the management staff, the recruitment staff and others as outlined below.

It should be noted that the costs of time and lost productivity are no less important or real than the costs associated with paying cash to vendors for services such as advertising or temporary staff. These are all very real costs to the employer.

These calculations will easily reach 150% of the employees annual compensation figure. The cost will be significantly higher (200% to 250% of annual compensation) for managerial and sales positions.

To put this into perspective, let's assume the average salary of employees in a given company is $50,000 per year. Taking the cost of turnover at 150% of salary, the cost of turnover is then $75,000 per employee who leaves the company.

For the mid-sized company of 1,000 employees who has a 10% annual rate of turnover, the annual cost of turnover is $7.5 million!

Do you know any CEO who would not want to add $7.5 million to their revenue? And, by the way, most of that figure would be carried over to the profit line as well.

Here is the list:

Priority model for time management

Here is a simple priority model for showing which project or task is your highest priority. Projects or tasks with both High Importance and High Urgency are in the upper right or HIHU quadrant. You (should) work on items that are in the HIHU quadrant before working on other things.

You might ask when do we work on the other quadrants? Simple, when the HIHU quadrant is empty, then we go to the HU quadrant to complete those items. The HI and LILU quadrants should be scheduled as much as possible so as to allocate time for them.

Yes, there are times when items are in the HIHU quadrant but you work on items in other quadrants, especially when you need a change of pace or when you are waiting on something external to happen to the items. This model is not a cast in iron law. It merely helps you visually see which items are the most important and urgent and prioritize accordingly.

New Years Resolutions

How many of us know someone that has made a New Years resolution?

Where can you easily find them?

In the gym. They show up every year and are going to get in shape.

They are doomed to failure.

An alternative to New Years resolutions is to go on a journey of constant improvement. Small steps, in the right direction, and constant effort will get us where we want to go.

Continuous effort - not strength or intelligence - is the key to unlocking our potential.
Winston Churchill