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Minimize Costs of Change

  • Writer: actionpotentialcon
    actionpotentialcon
  • Feb 22
  • 1 min read

Updated: 3 days ago

Turnover costs are often more detrimental than organization estimate.  Turnover cost fall into two main categories:



  Direct Costs


  • Recruiting & job advertising

  • Recruiter time or agency fees

  • Background checks & assessments

  • Interview time (hiring managers + HR)

  • Signing bonuses

  • Onboarding & training costs



  Indirect Costs (Often Larger)


  • Lost productivity during vacancy

  • Reduced team productivity

  • Knowledge drain

  • Customer service disruption

  • Lower morale

  • Mistakes from new hires learning the role



Indirect costs are frequently underestimated but can exceed direct hiring costs.


High turnover doesn’t just increase hiring costs — it:


  • Reduces institutional knowledge

  • Increases burnout among remaining employees

  • Impacts revenue and customer retention

  • Damages employer brand


Not every employee is going to reach their potential in every role or organization.  However, using a coaching model to support employees in their transition to a better working context will reduce the costs of turnover.


Using a coaching model to support outgoing employees may also provide new opportunities for the agency through new partnerships and maintaining positive relationships.

 
 
 

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