WEST PALM BEACH – Employee turnover costs money, but unfortunately it's part of the business of running a credit union – or any business, for that matter. The Center for Community Economic Development, University of Wisconsin put together a worksheet adapted from formulas developed by HR experts Wayne Cascio, H.L. Smith and W.E. Watkins that identifies four major employees turnover cost categories:
Separations costs include:costs incurred for exit interviews; administrative functions related to termination; separation/severance pay; and any increase in unemployment compensation.
Vacancy costs include the net cost/savings incurred as a result of increased overtime or temporary employees needed to complete the tasks of the vacant position.
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Replacement costs include the cost of: attracting applicants; entrance interviews; testing; travel/moving expenses; preemployment administrative expenses; medical exams; and acquisition and dissemination of information.
Training costs include formal and informal training.
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