I have heard that there is a study by the United States Department of Labor that confirmed that costs to replace an employee could equal 200% of salary. Regardless of survey, we all know the actual and hidden costs to replace an employee. Some costs of unplanned turnover include:
- Departing employees costs (vacation pay and other benefits);
- Advertising for the new position;
- Management interviewing time for the new employee;
- Conducting background checks (driving, criminal, etc.);
- The time it takes to train the new employee;
- The new employee's initial low productivity;
- Unbudgeted overtime for staff covering the empty position while it is being replaced;
- Possible low morale of remaining staff and its related impact on productivity – staff becomes overworked and stressed during this time.
So my question for you is: How is the turnover in your physician practice? If high, what is the problem and how are you going to fix it?