I was at the bank recently and noticed that a teller who often helped me hadn't been there in a while. I didn't know her name, but always enjoyed our interactions. After asking about her, I was told that she had moved on. I'm sure this happens often, but it got me thinking about turnover, the cost of losing an hourly employee, and how they might have kept her.
Money magazine reports that teller turnover will reach 30% in 2012. And a recent study conservatively estimated that the turnover costs for an $8.00/hour employee is $5,505.80.
What would those numbers look like for a regional branch manager? Imagine you have 1,000 tellers across a few branches with a 30% turnover rate.
That's 1,000 Employees - 30% Turnover = 300 Open Positions
300 Open Positions (each valued at $5,505.80) = $1,651,740
As a performance improvement organization we are constantly looking at numbers like these and working with our clients to devise a plan of action before they incur huge financial hits. We've recently seen pilot training programs and employee survey tools help to reduce front-line turnover by 2/3.
How are you reducing turnover in your branches? Anything you could be doing differently?