The Cost of Turnover

Turnover in the Consulting Industry is extreme.  With the constant travel and deadlines to be met, it is a very demanding lifestyle.  Finding the right person who will grow in this industry is a constant challenge.  People are the primary asset in most consulting companies.  When we try to grow too fast, the turnover goes up and problems increase with our projects.  When we try to control our growth, we lose business.   

Everyone knows that turnover costs money, but how much does it cost?  Using a model from the University of Wisconsin, Chimera Enterprises has calculated the additional costs associated with trying to grow the business by one additional person for a year.  It assumes that an entry level person costs $40,000 per year with fringe.

If you have 50% turnover or retain 1 of every 2 people you hire in a year, turnover is costing you an additional $49,175 for every position you try to fill.   If you lose 3 of every 4 people you hire (75% turnover), then the additional costs climb to $85,230.

During the 1st year of employment poor hiring techniques are the leading cause of turnover in the industry.  These techniques can be addressed.  Some companies try to cast a big net and keep the costs low, while others address the problems.  Chimera Enterprises is only interested in talking to those companies that want to address the problems.  

Look at what Chimera Enterprises offers:

  • Focused searches in cities that have proven track records

  • Constant upgrading of searches to keep them fresh and focused

  • Identifying qualified candidates through client-specific guidelines

  • Through client-specific telephone interviews, screen those who are not committed

  • Assist the client with focused 2-step interview process

  • Higher retention rates

Let Chimera Enterprises show you how to grow your business.

Cost of Turnover Detail

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