ROCHESTER, NY /Send2Press Newswire/ – Sharrow Group (www.sharrowgroup.com), a national executive search and consulting firm serving the home building industry, announces an innovative, online Turnover Cost Calculator to help builders understand the true impact of turnover on their bottom line. With home building turnover averaging 20 to 25% annually, successful companies know the competitive advantage of reducing its cost.
The Sharrow Group estimates the hard and soft costs of turnover are one to five times the annual salary of the position being replaced. While some turnover is inevitable and even desirable, these numbers merit careful attention. Losing proven staff costs far more than replacement expense; it reduces efficiency, impairs customer satisfaction and slows growth. The free Turnover Cost Calculator, available at www.sharrowgroup.com, makes it easy for builders to customize all assumptions to their own situation.
For example, according to Bill Carpitella, CEO of the Sharrow Group, “If the person who leaves was doing a good job, you have to calculate the loss of the high caliber of deliverables over time. When you bring on a new recruit, it typically takes a year before that person is functioning at a similar level of knowledge and output as the person they replaced.”
How can a company manage turnover better? Carpitella suggests assessing the following:
* Where is turnover high? At the junior or senior level? In one area or many?
* What is the cycle? Is it new hires or veterans?
* What is the ratio of voluntary to involuntary turnover?
“The answers to these questions help identify a trend within the organization and that’s the first step in fixing the problem,” says Carpitella. He adds, “Companies need to develop a comprehensive approach that helps them formulate ways to not only attract but keep and grow valuable people.” The biggest issues Sharrow Group sees with the builders seeking its help are good people leaving because they don’t see the career path for themselves or lack effective leadership.
The Sharrow Group offers multi-dimensional capabilities, from executive recruitment to strategies to improve company profitability and align strategy, structure, process and people. The Sharrow Group is headquartered in Rochester, N.Y. with offices in Dallas, Texas; Detroit, Mich.; Fort Wayne, Ind.; Greenville, SC; Hilton Head, S.C.; Reno, Nev.; Philadelphia, Pa.; and Washington, DC.
More information: http://www.sharrowgroup.com