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New Calculator for Employers Tallies the Full Cost of Employee Turnover

Center for Economic and Policy Research: “”Employee turnover costs businesses millions of dollars each year.  However, many employers don’t accurately track this expense, which could be reduced by improving workplace conditions.  To help business owners understand the cost of turnover, the Center for Law and Social Policy (CLASP) and Center for Economic and Policy Research (CEPR) have released an updated turnover calculator.  This dynamic tool allows employers to calculate turnover costs by responding to 10 simple questions. When employees leave or are laid off, companies incur numerous expenses searching for and on-boarding their replacements; these include advertising, recruiting, background checks, benefits administration, training, and lost productivity while new employees become proficient at their jobs.  Taken together, these costs can have serious implications for bottom lines.  The turnover calculator allows businesses to input wages; weekly hours; and recruiting, hiring, and training costs to determine the financial impact for different categories of workers.  In today’s competitive marketplace, employers are closely attuned to employee retention factors.  That’s why many have begun to implement worker protections that reduce turnover, including earned sick days, paid family and medical leave, and fair scheduling practices.  But while some employers are leading in these areas, too many businesses haven’t caught on. Thirty-nine percent of workers (more than 41 million) still lack paid sick days; just 13 percent of civilian workers have access to paid family leave, and only about 40 percent of workers have short-term disability leave through their employers…”

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