Read this white paper for a step by step calculation of turnover cost, the top 10 employee complaints that could lead to turnover, plus solutions for diminishing this costly phenomenon at your organization.

1.
A
White
Paper
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It
is
a
BIG
NUMBER,
and
beyond
financial
it
is
damaging
to
employee
morale.
What
can
you
do
to
increase
your
confidence
and
mitigate
the
damage?
YYYooouuu
cccooouuulllddd
PPPRRREEEVVVEEENNNTTT
gggeeettttttiiinnnggg
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pppeeeooopppllleee...
Read
on
to
learn
about
turnover:
how
to
measure
it,
manage
it,
and
how
to
diminish
it
before
it
happens.
REALLY.

2.
White
Paper,
12
pages,
on
Employee
Turnover,
by
Pamela
Stambaugh
and
Ryoji
Nakamichi,
—
July
22,
2013
2
EEEmmmpppllloooyyyeeeeee
TTTuuurrrnnnooovvveeerrr:
What
is
it,
its
costs,
and
how
you
might
manage
it?
by
Pamela
Stambaugh,
MBA
and
Ryoji
Nakamichi
“The
ability
to
make
good
decisions
regarding
people
represents
one
of
the
last
reliable
sources
of
competitive
advantage
since
very
few
organizations
are
very
good
at
it.”
—Dr.
Peter
Drucker
UUUnnndddeeerrrssstttaaannndddiiinnnggg
TTTuuurrrnnnooovvveeerrr
aaasss
aaa
CCCooonnnccceeepppttt
What
is
Turnover?
When
employees
leave
a
company
and
have
to
be
replaced,
that's
called
turnover.
A
certain
amount
of
turnover
is
unavoidable,
but
too
much
can
ruin
a
company.
Some
employees
will
always
retire,
move
away,
go
back
to
school,
or
leave
the
workforce.
This
level
of
turnover
is
not
only
unavoidable,
it
can
be
beneficial.
It
brings
new
people
into
the
organization
with
new
ideas
and
a
fresh
perspective.
Three
Types
of
Turnover
Organizations
generally
accept
that
turnover
is
broken
into
three
types:
overall,
voluntary
and
involuntary.
Overall
turnover
is
composed
of
voluntary
and
involuntary
turnover
that
reflects
the
total
number
of
turnovers
during
a
determined
period.
Voluntary
turnover
is
initiated
by
the
employee
who
desires
to
terminate
employment.
An
employee
might
leave
the
job
due
to
not
fitting
in
with
the
established
corporate
culture
or
receiving
a
much
better
offer
for
a
position
from
another
company.
In
contrast,
involuntary
turnover
is
caused
by
dismissal
from
the
company
due
to
perhaps
underperformance
or
a
business
slow
down.
HHHooowww
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aaa
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iiisss
TTTuuurrrnnnooovvveeerrr???
Trends
for
all
industries
average
turnover
rate
from
2009
through
2011
Table
1
provides
trend
data
from
the
Executive
Brief:
Tracking
Trends
in
Employee
Turnover.
The
data
reflects
that
average
annual
turnover
rate,
average
voluntary
and
involuntary
turnover
rates
from
2009
to
2010
increased,
then
decreased
from
2010
to
2011.
These
variations
correlate
with
national
unemployment
during
the
same
period.
According
to
IBISWorld
Survey
June
2013
(Table
2),
the
national
unemployment
rate
was
9.3%
in
2009.
In
2010,
it
was
9.6%,
an
increase
of
0.3%
from
the
previous
year.
However,
the
national
unemployment
rate
decreased
from
9.6%
to
9.1%
in
2011.
Table
1.
All-­‐industry
Average
Turnover
Rates
for
2009-­‐2011
by
type
Year
Average
Annual
Turnover
Average
Voluntary
Turnover
Average
Involuntary
Turnover
2009
14%
8%
7%
2010
15%
13%
9%
2011
13%
9%
6%
Source:
SHRM
Human
Capital
Benchmarking
Database
(2010-­‐2011,
2011-­‐2012,
and
2012-­‐2013)

3.
White
Paper,
12
pages,
on
Employee
Turnover,
by
Pamela
Stambaugh
and
Ryoji
Nakamichi,
—
July
22,
2013
3
Table
2.
National
Unemployment
Rate
for
2009-­‐2011
by
type
Year
National
Unemployment
Rate
Change
Rate
of
Previous
Year
2009
9.30%
3.50%
2010
9.60%
0.30%
2011
9.10%
-­‐0.50%
Source:
IBISWorld
Business
Environment
Profile
June
2013:
National
Unemployment
Rate
Turnover
Rates
within
Specific
Industries
Table
1,
the
data
from
the
Executive
Brief:
Differences
in
Employee
Turnover
Across
Key
Industries
suggests
which
key
industries
have
high/low
turnover
rate,
revenue
per
FTE
(full-­‐time
equivalent),
and
cost-­‐per-­‐hire.
The
highest
turnover
rates
were
service
industries
such
as
accommodation,
food,
and
drinking
places
(35%)
and
the
lowest
turnover
rates
were
associations
such
as
professional
and
trade
associations
and
utilities
(8%).
The
average
turnover
rate
was
15%
in
all
industries
in
2010.
The
revenue
per
FTE
is
a
measure
of
employee
productivity.
This
ratio
provides
information
on
a
company’s
efficiency
during
a
determined
period.
The
industries
with
high
revenue
per
FTE
indicate
much
better
productivity
than
other
industries
with
low
revenue
per
FTE.
The
cost-­‐per-­‐hire
is
usually
high
in
high-­‐tech
industry
in
order
to
recruit
skilled
staff
and
train
them
compared
with
service
industries.
As
a
result,
the
cost-­‐per-­‐hire
for
industries
such
as
high-­‐tech
($3,357),
association
($5,582),
and
utilities
($3,936)
was
higher
than
the
service
industry
($1,062).
The
Relationship
between
Turnover
and
Job
Satisfaction
Job
satisfaction
is
frequently
—
but
not
always
—
relevant
to
voluntary
turnover
rates.
Employees
who
are
satisfied
with
their
jobs
tend
to
stay.
On
the
other
hand,
those
who
are
dissatisfied
with
their
jobs
often
seek
new
jobs.
Figure
1
reveals
trend
data
from
the
Executive
Brief:
Tracking
Trends
in
Employee
Turnover.
The
data
suggests
that
job
satisfaction
rates
tended
to
elevate
over
past
years
until
2009;
however,
job
satisfaction
has
begun
to
slowly
decline
from
2009
to
2012.
One
of
our
reviewers
pointed
out
that
in
the
mortgage
business,
turnover
has
more
to
do
with
the
ups
and
downs
of
the
market
than
employee
satisfaction
and
that
was
certainly
true
in
2007
and
2008.
“nIn
2008
after
the
subprime
crash,
Orange
County
lost
between
50,000
and
60,000
mortgage
jobs.”
He
gave
another
more
recent
example
of
the
mortgage
industry
being
hot
until
a
month
ago
when
rates
spiked
and
application
volume
was
off
by
50%
-­‐
60%.
“If
that
continues,
that
business
will
cut
in
half
within
about
four
months.”
John
further
pointed
out,
“In
a
downturn,
A-­‐players
will
more
often
keep
their
jobs,
B
and
C
players
will
be
let
go.”
More
on
A-­‐players
later.

4.
White
Paper,
12
pages,
on
Employee
Turnover,
by
Pamela
Stambaugh
and
Ryoji
Nakamichi,
—
July
22,
2013
4
HHHooowww
YYYooouuu
CCCaaalllcccuuulllaaattteee
TTTuuurrrnnnooovvveeerrr
The
Turnover
Rate
Explained
Turnover
rate
is
the
calculation
of
the
number
of
employees
who
have
left
the
company
expressed
as
a
percentage
of
the
total
number
of
employees.
How
to
calculate
turnover
rate
According
to
the
Society
For
Human
Resource
Management
(SHRM)
April
2013:
How
to
Determine
Turnover
Rate,
it
is
calculated
by
taking
the
number
of
separations
during
a
month
divided
by
the
average
number
of
employees,
multiplied
by
100.
This
formula
is
the
mathematical
expression
of
the
monthly
turnover
rate.
Turnover
rate
=
#
of
separations
/
average
#
of
employees
x
100
When
you
count
the
number
of
employees
in
your
company
use
employee
headcount
rather
than
full
time
equivalents
(FTE).
This
headcount
should
include
all
employees
on
the
payroll.
Be
sure
to
count
temporary
workers
who
are
on
your
company
payroll
and
employees
on
temporary
layoff,
leave
of
absence
or
furlough.
The
number
of
employees
should
not
include
independent
contractors
or
temporary
workers
on
an
agency’s
payroll.
Example
of
calculation
of
Monthly
Turnover
rate
Company
A
runs
a
headcount
report
at
the
beginning,
middle
and
end
of
each
month.
The
headcount
on
January
1
is
143
employees.
The
headcount
on
January
15
is
148
employees.
The
headcount
on
January
30
is
151
employees.
Using
the
formula
avg.
#
of
employees
=
(SUM
headcount
from
each
report)
/
number
of
reports
used
=
(143+148+151)
/
3
=
147.333
Company
A’s
average
number
of
employees
in
January
is
147.333.
The
number
of
separations
during
a
month
includes
both
voluntary
and
involuntary
turnover
but
do
not
include
employees
who
are
temporarily
laid
off,
on
furloughs
or
on
a
leave
of
absence.

5.
White
Paper,
12
pages,
on
Employee
Turnover,
by
Pamela
Stambaugh
and
Ryoji
Nakamichi,
—
July
22,
2013
5
In
January,
Company
A:
• Had
two
employees
on
FMLA
• Let
go
of
five
agency
temporary
workers
• Had
one
employee
who
retired
• Terminated
two
employees
for
cause
• Placed
one
employee
on
unpaid
furlough
The
number
of
separations
for
the
month
is
only
three.
As
stated
above,
count
only
voluntary
and
involuntary
separations
within
the
month.
In
this
case,
company
A
had
three
separations
and
147.333
average
number
of
employees
in
January.
Therefore,
if
you
follow
the
formula,
the
company
A
turnover
rate
for
January
is
2.04%,
calculated
as
follows:
3
/
147.33
*100=
2.04%
(Turnover
rate
=
#
of
separation
/
avg
#
of
employees
*100
)
*If
you
add
all
12
monthly
turnover
rates
for
the
entire
year
(Jan.
turnover
rate
(TR)
+
Feb.
TR
+…..+
Dec.
TR),
you
have
determined
your
annualized
turnover
rate.
TTThhheee
CCCooosssttt
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TTTuuurrrnnnooovvveeerrr
According
to
the
Society
For
Human
Resource
Management
(SHRM):
Cost
of
Turnover,
turnover
costs
include
four
classifications
—
1)
separation
processing
costs,
2)
replacement
hiring
costs,
3)
training
new
hire
costs
and
4)
lost
productivity
or
business
costs.
Separation
costs
include
the
time
and
expense
required
in
order
to
exit
an
individual
from
the
organization.
Replacement
costs
generally
include
sourcing,
interviewing
and
hiring
expenses
associated
with
finding
new
staff.
Training
costs
include
the
on-­‐boarding
process
of
a
new
employee
and
the
proper
acclimation
to
the
environment
and
new
work
procedures
and
processes.
Lost
business
and
lost
productivity
costs
are
another
category
of
turnover
costs.
While
this
category
includes
the
“savings”
incurred
by
not
paying
wages
for
the
exited
employee,
it
also
includes
costs
associated
with
lost
morale,
lost
revenue
and
the
performance
differential
as
the
new
person
comes
up
to
speed,
etc.
For
purpose
of
illustration,
the
table
below
depicts
the
turnover
costs
of
a
nurse
position
in
the
Denver/Boulder
area.
In
this
example,
the
hourly
rate
for
the
nursing
position
is
$20,
and
benefits
account
for
35%
of
salary.
Although
line
item
costs
for
each
category
may
not
necessarily
apply
for
all
organizations,
many
of
them
would
be
similar.
Calculating
Turnover
Costs
(Sample
for
Registered
Nurse
Position
in
Denver/Boulder
area)
Separation
Processing
Costs:
+
cost
of
exit
interviewer's
time
(60
minutes
@
$16
x
135%)
$22.00
+
cost
of
departing
employee's
time
(30
minutes
@
$20
x
135%)
$14.00
+
cost
of
administrative
functions
relating
to
the
departure
(2
hours
@
$14
x
135%)
$38.00
+
cost
of
separation
pay
associated
with
the
departure
(40
hours
@
$20)
$800.00
+
cost
of
unemployment
tax
related
to
the
departure
(assumes
account
reimbursement
of
4
weeks
@
$337)
$1,348.00

6.
White
Paper,
12
pages,
on
Employee
Turnover,
by
Pamela
Stambaugh
and
Ryoji
Nakamichi,
—
July
22,
2013
6
Replacement
Hiring
Costs:
+
cost
of
attracting
applicants
(annual
ad
budget
/
number
of
positions
filled)
$500.00
+
pre-­‐employment
administrative
expenses
(3
hours
@
$24
x
135%)
$98.00
+
cost
of
entrance
interviews
(5
interviews
@
1
hour
x
2
interviewers
@
$30
x
135%)
$405.00
+
cost
of
aptitude,
skill,
drug,
etc.
testing
(30
minutes
@
$14
x
135%
+
$16
+
$25)
$51.00
+
cost
of
hiring
decisions
meetings
(1
hour
x
2
interviewers
@
$30
x
135%)
$81.00
+
cost
of
post
employment
physical
exams
(assumes
performed
in
house)
$50.00
+
post-­‐employment
information
gathering
(records,
payroll,
etc.)
(1
hour
@
$14
+
1
hour
@
$20
x
135%)
$46.00
+
cost
of
signing
bonus
(RN's
in
Denver
area
currently
ranging
from
$1K
-­‐
$3K)
$1,000.00
+
cost
of
employee
finder's
fee
(Denver
area
currently
ranging
from
$500
-­‐
$1K)
$500.00
Training
New
Hire
Costs:
+
cost
of
information
literature
(manuals,
brochures,
policies,
etc.)
$10.00
+
cost
of
general
orientation
(16
hours
@
$20
+
16
hours
@
$16
x
135%)
$778.00
+
cost
of
job
orientation
(unit
orientation
80
hours
@
$20
+
40
hours
@
$25
x
135%)
$3,510.00
Lost
Productivity
and
Lost
Business
Costs:
+
cost
of
additional
overtime
to
cover
the
vacancy
(20
hours
@
$30
x
135%
x
6
weeks)
$4,860.00
+
cost
of
additional
temporary
help
(20
hours
@
$37
x
6
weeks)
$4,440.00
-­‐
wages
and
benefits
saved
due
to
the
vacancy
(40
hours
@
$20
x
135%
x
6
weeks)
<$6,480.00>
+
cost
of
performance
differential
while
new
employee
gets
up
to
speed
(96
hours
@
$20
x
135%
x
20%)
$519.00
+
cost
of
low
morale-­‐related
time
wasted
due
to
"water
cooler
grumbling"
(1
hour
@
$20
x
135%
x
5
days
x
6
weeks)
$810.00
+
cost
of
lost
customers,
sales,
profits
due
to
the
departure
(gross
profit
loss
per
patient
$3,100
per
day
x
3.5
days
x
25%
profit
margin)
$2,713.00
+
cost
of
additional
employee
departures
related
to
the
departure
(if
just
one
other
nurse
leaves,
the
cost
is
equal
to
the
total
of
these
costs)
$16,113.00
Total
$
32,226.00
Source:
©2000-­‐2004
KeepEmployees,
Inc.
(www.keepemployees.com/healthcare3.htrm)

7.
White
Paper,
12
pages,
on
Employee
Turnover,
by
Pamela
Stambaugh
and
Ryoji
Nakamichi,
—
July
22,
2013
7
To
replace
this
$40,000
a
year
employee
costs
$32,226,
which
is
81%
of
a
year’s
salary.
TTThhheee
PPPooottteeennntttiiiaaalll
AAAdddvvvaaannntttaaagggeeesss
ooofff
TTTuuurrrnnnooovvveeerrr
According
to
Chron.com:
Advantages
of
Turnover,
employers
believe
that
turnover
has
only
a
negative
effect
for
their
organization.
However,
there
are
some
advantages
of
turnover
for
the
organization
that
are
listed
and
explained
below.
Talent
Infusion.
Voluntary
turnover
and
involuntary
turnover
both
make
way
for
infusing
talent
in
an
organization.
Employees
who
leave
of
their
own
volition
as
well
as
employees
who
leave
due
to
involuntary
discharge
aren’t
always
high
performers.
Employees
with
subpar
performance
drain
the
company
of
resources
and
money.
These
turnover
scenarios
create
opportunities
for
an
employer
to
recruit
new
talent
with
new
ideas
and
emerging
skills.
However,
it
is
worth
tracking
whether
the
turnover
is
voluntary
or
involuntary
to
learn
what
else
should
be
considered
when
measuring
the
performance
of
hiring
practices
and
the
assessment
of
performance
review
processes,
which
can
be
—
and
often
are
—
faulty.
That
is
a
topic
for
a
different
White
Paper.
Efficiency.
Infusing
talent
also
leads
to
updated
work
processes
with
technology-­‐driven
solutions.
New
employees
bring
a
fresh
perspective
to
the
workplace
as
well
as
new
ways
of
operating
the
business.
Many
of
their
solutions
improve
efficiency
and,
ultimately,
profitability.
Shape
Up.
Involuntary
turnover,
as
in
employee
termination,
sends
a
message
to
other
employees.
It
is
a
testament
that
the
disciplinary
process
works
and
that
if
performance
doesn’t
improve,
they,
too,
can
be
terminated
for
poor
performance,
behavior
or
misconduct.
While
this
is
a
hard-­‐line
approach
to
seeing
the
advantages
of
turnover,
it
often
works.
Morale.
Improved
employee
morale
is
another
advantage
of
turnover.
Disengaged
workers
sap
the
workplace
of
enthusiasm,
energy
and
productivity.
When
employees
who
are
performing
at
marginal
levels
leave
the
organization,
it
inspires
remaining
workers
and
returns
the
workplace
to
a
team-­‐oriented
work
environment
where
everyone
is
focused,
driven
and
interested
in
doing
a
good
job.
The
strain
placed
on
an
organization
by
managing
employees
whose
presence
affects
the
entire
workforce
is
lifted
when
those
employees
are
separated
from
the
company.
Cost
Savings.
When
long-­‐term
employees
leave,
the
company
is
no
longer
in
debt
for
high
wages
tenured
employees
earn.
Employers
can
reconfigure
their
compensation
practices
and
set
new
starting
salaries
for
less
experienced
workers.
The
cost
to
maintain
long-­‐term
employees
is
also
expensive
where
benefits
are
concerned.
Companies
that
raise
their
retirement
savings
contributions
for
tenured
employees
start
over
fresh
at
lower
employer
contribution
rates.
Lower
Benefit
Rates.
Insurers
base
their
premiums
on
age.
The
older
the
insured,
the
more
costly
it
is
to
insure
them
due
to
age-­‐related
conditions
and
diseases.
Seasoned
employees
are
generally
older
workers
for
whom
the
employer
absorbs
the
cost
of
health
care
premiums.
When
these
employees
leave
the
organization,
employer
benefits
costs
may
drop
significantly.
Employee
Retention
Hiring
excellent
employees
with
both
eligibility
and
suitability
for
the
job
is
a
significant
way
to
accomplish
companies’
goals
and
assure
the
success
of
the
business
into
the
future.
According
to
The
Wall
Street
Journal:
Employee
Retention
—
How
to
Retain
Employees,
there
are
four
tips
to
retain
employees
within
organizations:
1)
provide
a
competitive
benefits
package,
2)
provide
financial
incentives,
3)
hire
a
Human
Resource
Manager
(for
companies
nearing
100
employee
size),
and
4)
understand
employees’
expectations
for
their
jobs.

8.
White
Paper,
12
pages,
on
Employee
Turnover,
by
Pamela
Stambaugh
and
Ryoji
Nakamichi,
—
July
22,
2013
8
Offering
competitive
benefits
such
as
health
insurance,
life
insurance,
annual
paid
vacation,
and
financial
aid
for
advancing
their
careers
through
advanced
education
are
essential
ways
to
retain
employees.
It
has
been
shown
that
these
benefits
motivate
employees
and
make
them
feel
happy
to
have
their
jobs.
Offering
financial
incentives
such
as
a
bonus
or
other
rewards,
and
annual
raises
for
employees
who
reach
performance
goals
or
stay
in
the
organization
productively
for
long
periods
are
also
critical
ways
to
keep
the
employees
within
organizations.
It
is
particularly
important
to
provide
these
incentives
for
key
players.
Hiring
HR
managers
(for
companies
nearing
100
employee
size)
is
crucial
in
order
to
effectively
train
employees
and
understand
employees’
expectations
and
concerns
about
their
jobs.
HR
managers
review
employee
benefits
and
financial
incentives
systems
to
make
sure
they
are
adequate
for
the
employees.
They
can
provide
the
company
with
various
programs
to
facilitate
cooperation,
productivity
and
boost
morale.
An
understanding
of
what
employees
expect
from
their
job
may
seem
basic,
but
often
in
small
companies,
employees
have
a
wide
breadth
of
responsibilities.
If
they
don’t
know
exactly
what
their
job
entails
and
what
their
employer
expects
from
them,
they
can’t
perform
up
to
standard,
and
morale
can
begin
to
dip.
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About.com:
Ten
Employee
Complaints.
A
survey
conducted
by
HR
Solutions,
Inc.
revealed
these
ten
complaints
that,
knowing
them,
can
help
an
organization
to
retain
its
employees.
1. Higher
salaries.
Pay
is
the
number
one
area
in
which
employees
seek
change.
You
can
foster
a
work
environment
in
which
employees
feel
comfortable
asking
for
a
raise.
Often,
employees
believe
they
need
to
change
companies
to
improve
their
relative
pay
scale.
2. Internal
pay
equity.
Employees
are
concerned
particularly
with
pay
compression,
the
differential
in
pay
between
new
and
longer-­‐term
employees.
In
organizations,
with
the
average
annual
pay
increase
for
employees
around
4%,
employees
perceive
that
newcomers
are
better
paid
–
and,
often,
they
are.
3. Benefits
programs,
particularly
health
and
dental
insurance,
retirement,
and
Paid
Time
Off
/
vacation
days.
Specifically,
many
employees
feel
that
their
health
insurance
costs
too
much,
especially
prescription
drug
programs,
when
employers
pass
part
of
their
rising
costs
to
employees.
4. Over-­‐management.
Employees
often
defined
over-­‐management
in
interviews
as:
“Too
many
chiefs,
not
enough
Indians.”
Workplaces
that
foster
employee
empowerment,
employee
enablement,
and
broader
spans
of
control
by
managers,
will
see
fewer
complaints.
A
popular
word,
micromanaging,
expresses
this
sentiment,
too.
As
costs
rise,
flatter
organizational
structures
are
an
appropriate
adjustment
that
should
be
accompanied
by
efficiency
and
effectiveness
training.
5. Pay
increase
guidelines
for
merit.
Employees
believe
the
compensation
system
should
place
greater
emphasis
on
merit
and
contribution.
Employees
find
pay
systems
in
which
all
employees
receive
the
same
pay
increase
annually,
demoralizing.
Such
pay
systems
hit
the
motivation
and
commitment
of
your
best
employees
hardest
as
they
may
begin
asking,
“What’s
in
this
for
me?”
As
you
adopt
a
merit
pay
system,
one
component
is
education
so
that
employees
know
what
behaviors
and
contributions
merit
additional
compensation.
Employees
who
did
not
improve
must
be
informed
by
their
manager
about
how
their
performance
needs
to
change
to
merit
a
larger
pay
increase.

9.
White
Paper,
12
pages,
on
Employee
Turnover,
by
Pamela
Stambaugh
and
Ryoji
Nakamichi,
—
July
22,
2013
9
6. Human
Resources
department’s
responsiveness
to
employees.
The
Human
Resource
department
needs
to
be
more
responsive
to
employee
questions
and
concerns.
In
many
companies,
the
HR
department
is
perceived
as
the
policymaking,
policing
arm
of
management.
In
fact,
in
forward
thinking
HR
departments,
responsiveness
to
employee
needs
is
one
of
the
cornerstones.
7. Favoritism.
Employees
want
the
perception
that
each
employee
is
treated
equally
with
other
employees.
If
there
are
policies,
behavioral
guidelines,
methods
for
requesting
time
off,
valued
assignments,
opportunities
for
development,
frequent
communication,
and
just
about
any
other
work
related
decisions
you
can
think
of,
employees
want
fair
treatment.
8. Communication
and
availability.
Let’s
face
it.
Employees
want
face-­‐to-­‐face
communication
time
with
both
their
supervisors
and
executive
management.
This
communication
helps
them
feel
recognized
and
important.
And,
yes,
your
time
is
full
because
you
have
a
job,
too.
But,
a
manager’s
main
job
is
to
support
the
success
of
all
his
or
her
reporting
employees.
Through
employee
performance
the
manager
magnifies
his
or
her
own
success.
9. Workloads
are
too
heavy.
Departments
are
understaffed
and
employees
feel
as
if
their
workloads
are
too
heavy
and
their
time
is
spread
too
thin.
This
complaint
becomes
worse
as
layoffs
increase;
the
economy
slumps;
your
ability
to
find
educated,
skilled,
experienced
staff
gets
more
difficult;
and
your
business
demands
grow.
To
combat
this,
each
company
should
help
employees
participate
in
continuous
improvement
activities.
10. Facility
cleanliness.
Employees
want
a
clean,
organized
work
environment
in
which
they
have
the
necessary
equipment
to
perform
well.
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ttthhheee
FFFiiirrrsssttt
PPPlllaaaccceee
All
of
these
variables
impact
performance
and
job
satisfaction,
so
retention
starts
with
the
hiring
process.
“The
FIRST
place
to
manage
turnover,”
according
to
Pamela
Stambaugh,
President,
Accountability
Pays,
“is
to
get
the
right
people
in
the
right
roles
in
the
company
and
then
support
their
growth
and
development.”
Among
senior
executives
is
a
well-­‐accepted
realization
that
A
Players
hire
other
A
Players,
and
B
Players
hire
C
Players.
Another
reviewer
commented,
“This
is
exceptionally
true
but
some
companies
do
not
understand
this
because
they
treat
any
dollars
out
of
pocket
as
expenses.
An
A-­‐Player
adds
better
value
and
the
ROI
on
an
A-­‐Player
is
much
greater
so
the
cost
differential
is
an
investment
and
should
be
viewed
as
such.”
Competitive
advantage
is
achieved
by
having
great
people,
treating
them
well,
and
keeping
them
employed
in
a
challenging
and
fulfilling
environment.
While
there
are
many
assessments
on
the
market
today,
most
of
them
claim
to
solve
hiring
problems.
Some
—
such
as
personality
tests
—
can
actually
create
legal
liability
because
they
do
not
report
job-­‐specific
feedback,
so
they
are
not
EEOC
compliant
and
can
create
adverse
impact.
The
one
assessment
that
looks
most
deeply
at
both
eligibility
and
suitability,
and
is
structured
so
that
you
save
both
time
and
money
AND
identify
the
best
person
for
THAT
job,
is
the
Harrison
Assessments
Talent
Solutions.
It
is
EEOC
compliant
and
has
no
adverse
impact
because
of
its
job-­‐specific
reporting.

10.
White
Paper,
12
pages,
on
Employee
Turnover,
by
Pamela
Stambaugh
and
Ryoji
Nakamichi,
—
July
22,
2013
10
Too
many
assessments
fall
short
of
the
goal
of
quantifying
their
considerations
of
eligibility
(CAN
someone
do
the
job)
and
they
ignore
suitability
(do
they
WANT
to
do
the
WORK)
because
they
think
it
cannot
be
measured,
but
it
can.
Here
is
the
typical
challenge,
and
the
typical
level
of
quantification
of
the
attempt
to
select
the
right
candidate.
What
if
knowledge
of
medical
equipment
is
irrelevant
because
it
will
be
trained
anyway.
Too
often
too
little
is
known
about
the
relative
weight
of
these
variables.
In
fact,
the
Harrison
Assessment
quantifies
all
of
these
factors
and
combines
them
into
an
ideal
performance
benchmark
called
the
Job
Success
Formula.
Unique
to
the
Harrison
Assessment
is
the
very
important
capability
to
weight
each
of
these
factors
according
to
job
impact.
The
Harrison
Assessment
measures
suitability
including
156
behavioral
preferences,
a
robust
quantity
of
data
that
is
reported
job-­‐specific.
Currently
the
Harrison
Assessment
hiring
system
includes
6,000
job
success
formulas.
Below
is
an
example
of
the
time
and
money
savings
of
using
Harrison
Assessments.
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HHHaaarrrrrriiisssooonnn
AAAsssssseeessssssmmmeeennntttsss
TTTaaallleeennnttt
SSSooollluuutttiiiooonnnsss
CCCaaassseee
SSStttuuudddyyy
Position:
Assistant
to
CEO
 197
Applicants
 96
Short
Listed
 4
Brief
Phone
Interviews
and
1
face-­‐to-­‐face
interview
 1
Hire
The
previous
similar
campaign
took
more
than
45
hours.
This
entire
campaign
was
completed
in
8
hours.
Total
Cost:
$912
or
$8.45
per
applicant,
including
Applicant
Tracking
System
(Harrison
Assessments
system)

11.
White
Paper,
12
pages,
on
Employee
Turnover,
by
Pamela
Stambaugh
and
Ryoji
Nakamichi,
—
July
22,
2013
11

12.
White
Paper,
12
pages,
on
Employee
Turnover,
by
Pamela
Stambaugh
and
Ryoji
Nakamichi,
—
July
22,
2013
12
If
you
are
interested
in
learning
more
about
the
Harrison
Assessments
Talent
Solutions
or
working
with
existing
teams
to
improve
performance
and
productivity,
please
contact
Pamela
Stambaugh.
Pamela
Stambaugh
is
a
graduate
of
Lewis
and
Clark
College
in
Portland,
Oregon,
earning
her
MBA
at
the
University
of
San
Diego.
Founder
and
President
of
Accountability
Pays
for
27
years,
Pamela
is
a
seasoned
advisor
to
business
leaders
and
their
teams,
providing
training,
coaching,
and
team
facilitation
in
improving
performance,
productivity
and
results
through
people.
Pamela
has
coached
and
provided
senior
executive
team
building
experiences
since
1999.
She
has
worked
globally
with
senior
executives
including
five
years
as
a
TEC/Vistage
chair.
She
has
co-­‐authored
two
business
books.
Pamela
is
Master
Distributor
of
the
Harrison
Assessments
Talent
Solutions
(HATS),
as
well
as
a
partner
to
The
Table
Group,
Patrick
Lencioni
(5
Dysfunctions
of
a
Team),
and
facilitator
of
The
Speed
of
Trust,
a
transformational
program
for
senior
executives.
Her
clients
include
CBIZ,
GE
Healthcare,
Life
Technologies,
Anthony’s
Foods,
IABA,
Magma
Technologies
as
well
as
many
others.
Ryoji
Nakamichi
is
completing
a
certificate
program
in
International
Business
Operations
&
Management
and
Project
Management
at
UC
Irvine.
He
has
a
BA
in
Economics
from
Daito
Bunka
University,
Japan.
Ryoji
is
a
summer
intern
at
Accountability
Pays.
When
not
in
school
in
the
United
States,
he
resides
in
Mie,
Japan
(near
Osaka).
In
the
future
he
would
like
to
work
in
Human
Resources.
www.accountabilitypays.harrisonassessments.com